The Impact of the Professional Code of Ethics on Forensic Accountants, Auditors and Lawyers Engaged in Forensic Litigation Support

• In Event: Professional Issues Dealing with Fraud

Abstract

The purpose of the study is to determine whether the differing focuses of a profession’s codes of conduct impacts their decision making, when generating accounting estimates used in a forensic litigation service engagements. While both accountants and attorneys have professional codes of conducts, the axis of an accountants’ code is on skepticism (objectivity), as opposed client advocacy, which is attorneys’ primary focus. We predict and find evidence that traditional accountants are less likely to advocate for their clients than forensic accountants and forensic accountants are less likely to advocate for their clients than attorneys. We find that forensic accountants and lawyers are the most skeptical suggesting that investigative work reinforces skeptism more than assurance work. We also find that professional identity affects the degree to which attorneys advocate for their clients. These findings suggest that professional codes of conduct are consistent with professional behavior and that an individual’s professional identity influences the degree to which their behavior conforms to professional norms.

Authors

• Mariah Webinger, John Carroll University

• Madeline Domino, Mercer University