Issues	Case Study	Empirical Research
Conflicts of Interest	A forensic accountant is hired by a company to investigate allegations of financial misconduct by one of its executives. However, the executive in question is a close personal friend of the accountant. The accountant faces a conflict of interest between their loyalty to their friend and their professional duty to conduct an unbiased investigation.	Studies have shown that conflicts of interest are prevalent in forensic accounting engagements and can compromise the objectivity and integrity of investigations. Forensic accountants must navigate these conflicts carefully to maintain their independence and credibility.
Confidentiality Breaches	During a forensic accounting investigation, sensitive financial information is leaked to the media, causing reputational damage to the company under investigation. It is discovered that a member of the investigative team disclosed confidential information without authorization, raising ethical concerns about confidentiality breaches.	Empirical Research: Research has highlighted the importance of confidentiality in forensic accounting engagements and the potential consequences of breaches, including legal liability, loss of trust, and damage to professional reputation. Forensic accountants must adhere to strict confidentiality protocols to protect sensitive information.
Pressure from Clients or Employers	A forensic accountant working for a consulting firm is pressured by senior management to downplay findings of financial irregularities in a client’s financial statements. Despite evidence suggesting fraudulent activity, the accountant is instructed to prioritize maintaining the client relationship and securing future business.	Studies have documented instances of pressure from clients or employers influencing forensic accountants’ judgments and compromising the integrity of their work. Ethical dilemmas arise when professionals must balance their duty to serve their clients’ interests with their obligation to uphold ethical principles and professional standards.
Independence Issues	A forensic accountant is hired by a law firm to provide expert testimony in a legal dispute involving a former client. However, it is revealed that the accountant previously provided consulting services to the opposing party in the same case. The accountant faces challenges maintaining independence and impartiality in their expert testimony.	Research has shown that maintaining independence is a critical ethical consideration for forensic accountants, particularly in expert witness engagements and litigation support roles. Forensic accountants must disclose any potential conflicts of interest and take steps to mitigate bias or undue influence on their findings.