Forensic Accountants, Codes of Ethics and Forensic Accounting Corporations

Abstract

A survey reveals that a significant number of forensic accountants believe it is important that corporations that issue certifications in forensic accounting be not-for-profit and that these corporations have a duty to disclose their legal status. However, there are for-profit forensic accounting corporations that do not disclose their legal status. Not surprising given this failure to disclose, a significant number of forensic accountants do not know the legal status of the corporations that issued their certifications and many incorrectly believe that the corporations that issued their certifications are not-for-profit. The survey also found that, while most forensic accountants believe it is important that forensic accounting corporations have a procedure for enforcing compliance with their Codes of Ethics, many forensic accountants hold certifications from corporations that either do not have a Code of Ethics or do not have a procedure for enforcing their Codes. Recommendations are made for the forensic accounting profession to adopt and enforce a uniform Code of Ethics and for all forensic accounting corporations to increase transparency by disclosing their legal status.

Keywords: Forensic accountants, forensic accounting corporations, codes of ethics, forensic accounting certifications

JEL Classification: M40, M41, M42