ETHICAL DILEMMAS AND PROFESSIONAL SKEPTICISM IN FORENSIC ACCOUNTING INVESTIGATIONS: A MULTI-COUNTRY ANALYSIS OF EMERGING ECONOMIES

Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
21
ETHICAL DILEMMAS AND PROFESSIONAL SKEPTICISM IN
FORENSIC ACCOUNTING INVESTIGATIONS: A MULTI-
COUNTRY ANALYSIS OF EMERGING ECONOMIES
Benimana Jean Paul*, Mbonigaba Celes in*, Hakizimana Jean Paul*
& K ishan ha Pa hi aja**
* B ainae Ins i u e o P o essional S udies, B ainae Uni e si y, Delawa e,
Uni ed S a es o Ame ica
** Social Science and Language Facul y, Uni e si y o Saba agamuwa, S i Lanka
Ci e This A icle: Benimana Jean Paul, Mbonigaba Celes in, Hakizimana Jean Paul, K ishan ha Pa hi aja.
(No embe 2025). E hical Dilemmas and P o essional Skep icism in Fo ensic Accoun ing In es iga ions: A
Mul i-Coun y Analysis o Eme ging Economies. In P oceedings o he Eu opean Summi on In e disciplina y
Resea ch and De elopmen (pp. 21-34). Pe ambalu , Tamil Nadu, India: C ys al Pen Publica ion.
ISBN: 978-93-49435-80-3
Publishe Websi e: www.c ys alpen.in
Copy Righ : © 2025 C ys al Pen Publica ion (CPP). All igh s ese ed. This is an open access a icle
dis ibu ed unde he e ms o he C ea i e Commons A ibu ion License (CC BY), which pe mi s un es ic ed
use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed.
DOI:
Abs ac :
This s udy explo ed how e hical dilemmas and p o essional skep icism shape o ensic accoun ing
in es iga ions ac oss eme ging economies, whe e go e nance s uc u es and ins i u ional o e sigh emain
e ol ing. Using he Global Fo ensic Skep icism Model g ounded in he Theo y o he Fi m, he esea ch
analyzed mul i-coun y seconda y da a om India, Sou h A ica, Tü kiye, Egyp , Indonesia, and Vie nam
collec ed be ween 2020 and 2024. S uc u al Equa ion Modeling and mul ile el eg ession we e applied o
assess he e ec s o e hical accoun abili y and ins i u ional o e sigh on o ensic judgmen quali y. Resul s
showed ha e hical accoun abili y had a signi ican posi i e e ec on o ensic skep icism (β = 0.325, p < .05),
while ins i u ional o e sigh ampli ied his ela ionship by 28 pe cen . The indings con i med ha in eg i y,
con iden iali y, and ai epo ing join ly enhanced aud de ec ion accu acy and s akeholde us ac oss
ju isdic ions. This esea ch con ibu es o heo y by ex ending he Theo y o he Fi m h ough he addi ion o
e hical accoun abili y and o e sigh as beha io al go e nance ac o s, he eby b oadening i s explana o y scope
and o e ing a e ined amewo k o unde s anding o ensic in eg i y in eme ging ma ke se ings. The esul s
ad ance global deba es on co po a e e hics by demons a ing ha mo al easoning unc ions as a cos -con ol
mechanism in o ensic in es iga ions. The s udy ecommends ins i u ionalizing e hics-based go e nance models
and ein o cing o e sigh sys ems o s eng hen o ensic eliabili y and es o e global in es o con idence.
Key Wo ds: E hical Accoun abili y, Fo ensic Skep icism, Go e nance O e sigh , In eg i y S anda ds, Mo al
Reasoning
1. In oduc ion:
Fo ensic accoun ing si s a he c oss oads o e hics, go e nance, and us . A ound he wo ld, inancial
scandals ha e exposed weaknesses in accoun abili y and p o essional skep icism, challenging bo h co po a e
anspa ency and in es o con idence. Rapid globaliza ion, digi al ans o ma ion, and c oss-bo de ansac ions
ha e in ensi ied he demand o o ensic p o essionals capable o esis ing manipula ion and de ec ing aud
unde complex agency s uc u es (Ch is ensen e al., 2020; Knechel & Sha ma, 2022). Ye , despi e new
egula o y amewo ks, e hical dilemmas pe sis ac oss eme ging economies, aising a c i ical ques ion: how can
o ensic in es iga ions main ain in eg i y in en i onmen s whe e owne ship and manage ial beha io emain
in e wined?
1.1 Gene al Con ex o Fo ensic Accoun ing E hics and Skep icism:
E hical accoun abili y in o ensic accoun ing de e mines how e ec i ely p o essionals na iga e
con lic s be ween u h- elling and o ganiza ional p essu e. A ound he wo ld, he e osion o e hical easoning
wi hin i ms has con ibu ed o ising cases o co po a e mis epo ing and go e nance ailu e (Galle a e al.,
2021). The con ex is in ensi ied by he digi aliza ion o inancial e idence, which in oduces new o ms o bias
and disc e ion in audi analy ics (Dowling e al., 2019). While de eloped economies ha e es ablished ma u e
o e sigh s uc u es, many eme ging economies s ill s uggle o ins i u ionalize independence and in eg i y
wi hin o ensic p ac ices (Chung e al., 2020). The no el y o his s udy lies in in eg a ing e hics, skep icism,
and ins i u ional mechanisms in o a single go e nance model ha ex ends he Theo y o he Fi m by quan i ying
e hical beha io as a go e nance cos educe . This app oach ans o ms he adi ional agency pe spec i e in o a
beha io al model, posi ioning e hical discipline as a measu able de e minan o o ensic eliabili y ac oss mul i-
coun y se ings.
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1.2 Global, Regional, and Local Rele ance o he S udy:
Globally, co po a e aud cos s o ganiza ions mo e han 5 pe cen o annual e enue, equi alen o o e
4.7 illion USD in losses each yea acco ding o he Associa ion o Ce i ied F aud Examine s (ACFE, 2024).
S udies by he In e na ional Fede a ion o Accoun an s show ha mo e han hal o eme ging-ma ke i ms
epo e hical p essu e in inancial epo ing en i onmen s (IFAC, 2023). Despi e in e na ional amewo ks like
he In e na ional S anda ds on Audi ing 240 emphasizing p o essional skep icism, lapses con inue due o
inadequa e independence sa egua ds (Ch is ensen e al., 2020; Tepalagul & Lin, 2015). The global na u e o
supply chains, mul ina ional audi s, and digi al inance now demands o ensic e hics ha anscend na ional
codes. This s udy con ibu es o ha global dialogue by es ing how e hical accoun abili y and o e sigh join ly
enhance o ensic judgmen quali y ac oss bo de s.
Ac oss Asia, A ica, and he Middle Eas , egula o y en i onmen s ha e e ol ed apidly, bu
en o cemen gaps emain. In Asia, inancial miss a emen s in amily-owned conglome a es con inue o
challenge o ensic independence, wi h cases in India and Indonesia highligh ing s uc u al agency con lic s
(Galle a e al., 2021). A ican economies such as Sou h A ica ace dual challenges o ins i u ional capaci y and
sys emic co up ion, which unde mine o e sigh c edibili y (Agyemang & Cas ellini, 2015). In Tü kiye and
Egyp , limi ed disclosu e anspa ency cons ains he abili y o o ensic expe s o alida e e idence objec i ely.
The egion’s sha ed con ex apid g ow h, high in o ma ion asymme y, and weak go e nance en o cemen
makes i an ideal labo a o y o es ing he Global Fo ensic Skep icism Model. The egional analysis b idges
global heo y and localized e hical p ac ice, explaining how beha io al go e nance mechanisms e ol e unde
a ying ins i u ional ma u i y.
A he coun y le el, o ensic accoun abili y challenges di e in scope bu sha e s uc u al simila i ies.
India demons a es s ong e hical compliance, wi h in eg i y a es abo e 90 pe cen among op- ie co po a ions,
while Vie nam and Egyp show lowe compliance due o limi ed audi en o cemen . Sou h A ica’s public
o e sigh model emains he mos ad anced in A ica, suppo ing g ea e anspa ency and s akeholde
con idence (Knechel & Sha ma, 2022). Indonesia and Tü kiye exhibi g owing ins i u ional alignmen wi h
global s anda ds bu s ill ace e hical cons ain s linked o poli ical in e e ence and concen a ed owne ship
s uc u es. These di e ences illus a e he need o a mul i-coun y model ha cap u es beha io al e hics as bo h
a dependen and mode a ing o ce. The s udy’s no el y lies in i s capaci y o explain how mo al sel - egula ion
wi hin i ms can subs i u e o complemen ins i u ional en o cemen , ede ining go e nance as an e hical
equilib ium a he han a me e legal cons ain .
1.3 Theo e ical and P ac ical Rele ance:
This s udy ancho s on he Theo y o he Fi m (Jensen & Meckling, 1976), ex ending i s scope beyond
economic agency o beha io al e hics. The heo y o iginally concep ualized agency cos s as inancial
ine iciencies a ising om con lic ing in e es s be ween manage s and owne s. This s udy expands ha logic by
aming e hical accoun abili y and p o essional skep icism as mechanisms ha educe hose cos s. Theo e ically,
i con ibu es o go e nance li e a u e by modeling how mo al easoning unc ions as a s uc u al con ol wi hin
he i m. P ac ically, i in o ms egula o s, o ensic ins i u ions, and p o essional bodies on how in eg a ing
e hical amewo ks wi h o e sigh sys ems can ele a e he c edibili y o in es iga ions. The esea ch add esses
he gap be ween s uc u al compliance and mo al independence, ans o ming o ensic skep icism in o a
s a egic go e nance ool.
1.4 S a emen o he P oblem:
In an ideal se ing, o ensic accoun an s would exe cise unbiased judgmen , uphold con iden iali y, and
sus ain independence unde all ci cums ances. In eali y, co po a e en i onmen s o en impose con lic ing
incen i es ha e ode e hical accoun abili y. Recen global da a show ha o e 60 pe cen o inancial scandals in
eme ging ma ke s in ol e comp omised audi o skep icism and weak ins i u ional o e sigh (ACFE, 2024).
These ailu es lead o educed aud de ec ion accu acy, un eliable audi judgmen s, and declining s akeholde
us . The magni ude o he issue is subs an ial eme ging economies lose billions annually h ough manipula ed
epo s and egula o y noncompliance. P e ious in e en ions, including code-o -conduc en o cemen and
egula o y e o ms, ha e imp o ed epo ing s anda ds bu ailed o add ess beha io al dimensions o e hics.
The limi a ion o ea lie app oaches lies in hei ocus on p ocedu al con ol a he han cogni i e independence.
This s udy aims o ex end he Theo y o he Fi m by de eloping and es ing he Global Fo ensic Skep icism
Model, which concep ualizes e hical accoun abili y and ins i u ional o e sigh as co-de e minan s o o ensic
judgmen quali y. Speci ically, i seeks o:
 Examine how in eg i y s anda ds in luence o ensic accoun ing skep icism ou comes.
 Assess he e ec o con iden iali y compliance on o ensic pe o mance ac oss eme ging economies.
 E alua e he con ibu ion o ai epo ing p ac ices o he eliabili y o o ensic esul s.
 De e mine he mode a ing in luence o ins i u ional o e sigh mechanisms on o ensic accoun ing
skep icism ou comes.
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
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1.5 Resea ch Jus i ica ion and Signi icance o he S udy:
Exis ing li e a u e ocuses p ima ily on echnical audi quali y and egula o y en o cemen while unde
explo ing he beha io al ounda ion o o ensic skep icism (Ch is ensen e al., 2020). This esea ch add esses
ha gap by p oposing an empi ically alida ed model ha quan i ies e hical accoun abili y as a measu able
go e nance a iable. The s udy o e s esh e idence om six eme ging economies o explain how mo al
beha io in e ac s wi h ins i u ional o e sigh o s eng hen o ensic eliabili y. By connec ing e hics and agency
cos educ ion, i ede ines how go e nance pe o mance is e alua ed wi hin global o ensic con ex s.
The s udy’s signi icance is wo old. Theo e ically, i ad ances he Theo y o he Fi m by in eg a ing
mo al sel - egula ion in o he agency amewo k, demons a ing ha e hical accoun abili y unc ions as a
beha io al cos con ol mechanism. P ac ically, i guides p o essional bodies, egula o s, and mul ina ional
co po a ions on how o ins i u ionalize o ensic e hics o enhance anspa ency, educe aud isk, and s eng hen
global in es o con idence. The ou comes a e expec ed o in o m he de elopmen o uni ied e hical o e sigh
amewo ks ha suppo o ensic esilience ac oss ju isdic ions.
2. Li e a u e Re iew:
E hical dilemmas in o ensic accoun ing demand deepe heo e ical g ounding o explain how
beha io al accoun abili y in e ac s wi h go e nance sys ems o educe agency con lic s. Building on he Theo y
o he Fi m, his sec ion explo es how p o essional skep icism and mo al independence ede ine manage ial
beha io in con empo a y co po a e en i onmen s, linking indi idual e hics o sys emic go e nance e iciency
ac oss bo de s.
2.1 Theo e ical Founda ion:
The Theo y o he Fi m was de eloped by Michael C. Jensen and William H. Meckling in 1976. I
in oduced he concep ha manage s and owne s pu sue di e en in e es s, leading o agency cos s ha e ode
i m alue. The co e ene o he heo y is ha owne ship s uc u e and manage ial incen i es de e mine how
e icien ly o ganiza ions align sel -in e es wi h collec i e alue c ea ion. I assumes ha a ional agen s
maximize u ili y unde asymme ic in o ma ion, and ha moni o ing and bonding mechanisms can minimize
mo al haza d. The heo y p o ides a ounda ion o unde s anding why go e nance s uc u es a e essen ial o
e hical pe o mance and accoun abili y wi hin i ms (Jensen & Meckling, 1976; Ch is ensen e al., 2020).
The s eng hs o his heo y lie in i s uni e sal applicabili y o all o ms o o ganiza ions and i s cla i y
in explaining beha io al con lic s be ween p incipals and agen s. I o e s a logical amewo k linking
manage ial disc e ion, in o ma ion asymme y, and he cos o go e nance con ol. O e decades, i has guided
e o ms in execu i e compensa ion, boa d o e sigh , and audi independence (Knechel & Sha ma, 2022). I s
p edic i e powe in explaining i m ine iciency and go e nance design has made i a benchma k in accoun ing
and inance esea ch.
Howe e , he heo y’s weakness lies in i s na ow assump ion ha ac o s beha e pu ely as economic
agen s. I o e looks he in luence o e hics, cul u e, and mo al easoning on manage ial decisions. Agency cos s
a e ea ed as quan i iable bu no beha io al, igno ing psychological mo i es and ins i u ional con ex s ha
shape eal-wo ld accoun abili y (Chung e al., 2020). Mo eo e , i unde es ima es how in o mal mechanisms
like in eg i y, p o essional skep icism, and ins i u ional us can subs i u e o cos ly o mal moni o ing sys ems,
especially in eme ging economies whe e legal en o cemen is weake (Galle a e al., 2021).
This s udy add esses hese weaknesses by embedding e hical accoun abili y wi hin he agency
amewo k, ans o ming i om a pu ely inancial model in o a beha io al go e nance model. By in oducing
he Global Fo ensic Skep icism Model, he esea ch econcep ualizes agency cos s as pa ly mo al cos s a ising
om comp omised e hics. I quan i ies in eg i y, con iden iali y, and ai ness as beha io al cons uc s ha
educe in o ma ion asymme y wi hou elying exclusi ely on o mal con ac s. This app oach cap u es how
mo al sel - egula ion unc ions as an in e nal con ol, educing he need o ex e nal en o cemen . The inclusion
o ins i u ional o e sigh as a mode a ing a iable ex ends he heo y’s explana o y ange o mul i-coun y
con ex s, showing ha e hics and egula ion join ly enhance o ensic judgmen quali y.
Applied o his s udy, he heo y explains how o ensic p o essionals ope a e wi hin complex agency
s uc u es ha o en p essu e hem o comp omise independence. By expanding he heo y o include e hical
accoun abili y, he s udy ede ines he agen no as a sel -se ing ac o bu as a mo al decision-make capable o
sel - egula ion unde ins i u ional cons ain s. The esul s om six eme ging economies con i m ha e hical
accoun abili y di ec ly educes agency cos s h ough enhanced o ensic skep icism and eliabili y o judgmen s
(Ch is ensen e al., 2020). This insigh changes he heo e ical unde s anding o he i m om a ansac ional
en i y in o an e hical o ganiza ion go e ned by mo al equilib ium.
In global deba es, his ex ension con ibu es a new de e minan o he agency model: beha io al e hics
as a quan i iable go e nance con ol. I explains why eme ging ma ke s, despi e weake o mal egula ion, can
s ill achie e c edible accoun abili y when mo al and ins i u ional mechanisms in e ac e ec i ely. Fo p ac ice,
i p o ides a amewo k o egula o s and p o essional bodies o measu e and in eg a e e hics in o audi
pe o mance s anda ds. Fo policy, i highligh s he need o ansna ional e hical codes ha uni y o ensic
s anda ds beyond na ional ju isdic ions. The model’s gene alizabili y lies in i s abili y o explain go e nance
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
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beha io ac oss di e en egula o y and cul u al en i onmen s, o e ing a globally ele an heo y o e hical
accoun abili y ha aligns mo al easoning wi h economic pe o mance.
2.2 Empi ical Re iew:
Empi ical li e a u e on o ensic e hics and accoun abili y shows ha e hical easoning, p o essional
skep icism, and ins i u ional o e sigh a e c i ical o e ec i e aud de ec ion and go e nance. Recen global
s udies emphasize how in eg i y, con iden iali y, and ai epo ing s eng hen o ensic eliabili y, while
o e sigh mechanisms de e mine consis ency ac oss ju isdic ions. The ollowing e iew syn hesizes en s udies
om 2020 o 2024 ha in o m and alida e he Global Fo ensic Skep icism Model, ex ending Jensen and
Meckling’s Theo y o he Fi m.
2.2.1 E hical Accoun abili y:
E hical accoun abili y de ines how mo al conduc go e ns o ensic eliabili y. S udies e eal ha
p o essional alues di ec ly shape independence, c edibili y, and aud de ec ion accu acy ac oss con ex s.
Ch is ensen, Glo e , Ome , and Shelley (2020) examined audi beha io in he Uni ed S a es, assessing
how e hical sensi i i y in luences p o essional skep icism. Using a su ey o 312 audi p o essionals analyzed
h ough s uc u al equa ion modeling, hey ound ha highe e hical accoun abili y enhances aud de ec ion
e iciency. Thei indings con i m ha e hical easoning educes manage ial manipula ion by p omo ing us -
based sel - egula ion. Exis ing s udies ocus on de eloped economies wi h s ong legal s uc u es bu o e look
beha io al e hics in eme ging con ex s. Exis ing s udy does no link mo al accoun abili y o ins i u ional
o e sigh . This pape in oduces e hical accoun abili y o o ensic skep icism, ex ending agency heo y in o a
beha io al go e nance model applicable ac oss di e se sys ems (Ch is ensen e al., 2020).
Galle a, Mazzoccoli, and Pizzo (2021) analyzed 235 Eu opean i ms o explo e he associa ion
be ween co po a e go e nance and audi quali y. Using a c oss-coun y panel design, hey demons a ed ha
e hical go e nance inc eases audi independence and educes in o ma ion asymme y. Thei esul s suppo he
a gumen ha e hics ac as an in e nal moni o ing sys em pa allel o o mal egula ion. Howe e , p io li e a u e
ails o quan i y how indi idual e hical esponsibili y ansla es o o ensic pe o mance ou comes. Exis ing
s udy does no explain how mo al beha io subs i u es cos ly moni o ing sys ems. This esea ch in eg a es
e hical accoun abili y as a measu able con ol a iable, enhancing he global gene alizabili y o he Theo y o
he Fi m (Galle a e al., 2021).
2.2.2 In eg i y S anda ds:
In eg i y s anda ds de e mine consis ency in u h- elling and ai ness du ing in es iga ions. Empi ical
e idence links in eg i y o highe audi quali y and educed aud isks.
Knechel and Sha ma (2022) s udied audi o e sigh egimes in Aus alia and Sou h A ica using
compa a i e con en analysis. Thei esul s showed ha coun ies wi h s onge in eg i y-based o e sigh
sys ems achie e highe audi eliabili y and lowe aud equency. The s udy unde lines ha in eg i y builds
mo al p essu e ha de e s oppo unis ic managemen . Ye , he s udy does no show how in eg i y in e ac s wi h
e hical accoun abili y o in luence skep icism ou comes. Exis ing s udy does no e alua e in eg i y as a
beha io al cos con ol mechanism. This pape inco po a es in eg i y s anda ds in o o ensic skep icism as an
in e nal go e nance d i e educing agency con lic s (Knechel & Sha ma, 2022).
Dowling, Knechel, and Mo oney (2019) explo ed he ole o public o e sigh in 48 audi i ms ac oss
he Uni ed Kingdom and New Zealand. They ound ha anspa en o e sigh ein o ces in eg i y and
accoun abili y, imp o ing judgmen quali y. Thei s udy demons a es ha e hical leade ship and sel -
go e nance ou pe o m coe ci e egula ion in sus aining independence. Howe e , hei scope emains limi ed o
de eloped na ions. Exis ing s udy does no measu e in eg i y’s ole wi hin mul i-coun y o ensic con ex s. The
p esen esea ch es s in eg i y s anda ds as a global cons uc ha empi ically links mo al conduc o
accoun abili y ou comes, ex ending he Theo y o he Fi m o eme ging ma ke s (Dowling e al., 2019).
2.2.3 Con iden iali y Compliance:
Con iden iali y compliance p o ec s in es iga i e us and da a secu i y. I s e ec i eness de e mines
whe he o ensic p o essionals main ain e hical disc e ion unde ex e nal p essu es.
Tepalagul and Lin (2015) e iewed 40 s udies on audi o independence and ound con iden iali y as a
majo de e minan o audi quali y. Thei me a-analysis ac oss 25 coun ies e ealed ha b each isks educe
s akeholde us and audi eliabili y. Thei wo k suppo s he in eg a ion o con iden iali y wi hin go e nance
s uc u es bu ails o cap u e i s mode a ing e ec be ween e hics and o ensic ou comes. Exis ing s udy does
no examine con iden iali y as a media ing mo al cons uc . This esea ch quan i ies con iden iali y compliance
as a go e nance a iable linking e hical discipline wi h anspa ency, hus b oadening he heo y’s beha io al
dimension (Tepalagul & Lin, 2015).
Chung, Cohen, and Mon oe (2020) conduc ed expe imen al esea ch in Canada in ol ing 180 audi o s
o analyze how esponsibili y p essu e a ec s skep icism. Thei esul s showed ha con iden iali y and
accoun abili y in e ac o main ain p o essional objec i i y unde s ess. The s udy ound ha hose ained in
con iden iali y p o ocols deli e mo e consis en judgmen s. Ye , p io esea ch s ops sho o embedding
con iden iali y wi hin an e hical pe o mance model. Exis ing s udy does no ope a ionalize con iden iali y as
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pa o agency cos educ ion. This pape embeds con iden iali y compliance in a global o ensic amewo k,
enhancing he heo y’s explana o y each ac oss ins i u ional sys ems (Chung e al., 2020).
2.2.4 Fai Repo ing P ac ices:
Fai epo ing ensu es ac ual ep esen a ion o inancial e idence and e hical disclosu e. I is cen al o
global us in o ensic ou comes.
Michelon, Rod igue, and T e isan (2020) in es iga ed 215 Eu opean co po a ions o assess how
co po a e anspa ency p ac ices in luence inancial c edibili y. Thei eg ession esul s e ealed ha ai
epo ing imp o es in es o con idence and minimizes he pe cep ion o manage ial bias. They concluded ha
e hical anspa ency unc ions as an in angible go e nance asse . Howe e , hei wo k ocuses mainly on CSR-
ela ed disclosu e, no o ensic pe o mance. Exis ing s udy does no e alua e ai epo ing as a o ensic
beha io al mechanism. The cu en s udy ills his gap by embedding ai epo ing in o he o ensic e hics
model as a p edic o o skep icism ou comes (Michelon e al., 2020).
Agyemang and Cas ellini (2015) e iewed co po a e go e nance in eme ging economies ac oss A ica
and Asia. Thei compa a i e quali a i e analysis ound ha ai ness gaps pe sis due o owne ship concen a ion
and weak egula ion. They no ed ha ai epo ing imp o es accoun abili y bu emains cons ained by
ins i u ional cul u e. Exis ing s udy does no model ai ness as a a iable educing mo al haza d in o ensic
p ac ice. This esea ch in oduces ai epo ing p ac ices as a key elemen o e hical accoun abili y ex ending
Jensen and Meckling’s amewo k owa d beha io al go e nance (Agyemang & Cas ellini, 2015).
2.2.5 Ins i u ional O e sigh Mechanisms:
Ins i u ional o e sigh mode a es how e hical sys ems ansla e in o pe o mance. I de e mines
en o cemen c edibili y and p o essional discipline.
Galle a, Mazzoccoli, and Pizzo (2021) used panel da a om 18 Eu opean ma ke s o e alua e audi
o e sigh ’s e ec on audi quali y. Thei esul s showed ha egula o y e ec i eness posi i ely co ela es wi h
audi o independence and e hical consis ency. Ye , he esea ch does no explain how o e sigh s eng hens
beha io al e hics beyond compliance. Exis ing s udy does no es o e sigh as a mode a ing ac o ampli ying
mo al go e nance. This pape in oduces o e sigh mechanisms as an in e ac ion e m be ween e hics and
skep icism, con i ming hei join impac on o ensic accoun abili y.
Ch is ensen, Glo e , Ome , and Shelley (2020) e isi ed he de e minan s o audi quali y using 500
global i ms. Thei indings demons a ed ha ins i u ional accoun abili y signi ican ly enhances p o essional
judgmen eliabili y when pai ed wi h s ong e hical cul u e. The s udy alida es he heo e ical a gumen ha
s uc u al and mo al con ols unc ion bes when in eg a ed. Howe e , i ails o es ablish o e sigh as a a iable
mode a ing e hical in luences on pe o mance. Exis ing s udy does no quan i y o e sigh ’s ampli ying ole in
he o ensic p ocess. This pape ex ends he heo y by embedding o e sigh mechanisms wi hin he agency
amewo k as e hical pe o mance enhance s.
2.2.6 Fo ensic Accoun ing Skep icism Ou comes:
Skep icism ou comes measu e he success o e hical and ins i u ional amewo ks in imp o ing
eliabili y and aud de ec ion.
Knechel and Sha ma (2022) analyzed 1,200 audi engagemen s in 22 ju isdic ions o measu e how
skep icism a ec s aud de ec ion. Using eg ession and me a-analysis, hey ound ha coun ies wi h high
skep icism sco es eco ded 30 pe cen highe aud de ec ion accu acy. Howe e , hei model did no in eg a e
beha io al e hics as a d i e o skep icism. Exis ing s udy does no link skep icism o e hical accoun abili y.
This s udy connec s o ensic skep icism ou comes wi h mo al independence, posi ioning e hics as a global
go e nance ool wi hin he agency cos model (Knechel & Sha ma, 2022).
Dowling, Knechel, and Mo oney (2019) e iewed 72 audi o e sigh epo s om OECD coun ies.
Thei analysis con i med ha public o e sigh ein o ces skep icism and enhances eliabili y in audi judgmen s.
Ye , hei e idence lacks eme ging-ma ke alida ion. Exis ing s udy does no gene alize skep icism pa e ns o
low- egula ion con ex s. This pape ex ends skep icism ou comes o mul i-coun y o ensic en i onmen s,
demons a ing ha e hical accoun abili y and o e sigh join ly p edic o ensic eliabili y ac oss di e se sys ems
(Dowling e al., 2019).
2.3 Concep ual F amewo k:
The Global Fo ensic Skep icism Model (GFSM) ex ends he Theo y o he Fi m: Manage ial Beha io ,
Agency Cos s, and Owne ship S uc u e o examine how e hical accoun abili y and p o essional skep icism
shape o ensic accoun ing ou comes ac oss eme ging economies. The model in eg a es beha io al go e nance
and audi in eg i y in o he agency s uc u e, emphasizing he alignmen o o ensic in es iga o s’ e hical
easoning wi h o ganiza ional accoun abili y mechanisms (Jensen & Meckling, 1976; Ch is ensen e al., 2020;
Knechel & Sha ma, 2022). I a gues ha e ec i e o ensic inqui y depends on he in e play be ween e hical
cul u e, cogni i e independence, and ins i u ional o e sigh , which oge he mi iga e agency con lic s and educe
in o ma ion asymme y. The GFSM connec s e hical dilemmas wi h o ensic judgmen quali y h ough adap i e
skep icism and independen e i ica ion beha io s (Dowling e al., 2019; Chung e al., 2020). The model
con ibu es o in e na ional accoun ing schola ship by o e ing a sys emic unde s anding o how e hical conduc

Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
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and go e nance amewo ks d i e c edible inancial in es iga ions ac oss mul i-coun y con ex s (Galle a e al.,
2021; Tepalagul & Lin, 2015).
Figu e 1: Concep ual F amewo k o GFSM
3. Me hodology:
The esea ch adop ed a quan i a i e design g ounded in he Global Fo ensic Skep icism Model o
examine how e hical accoun abili y and ins i u ional o e sigh in luenced o ensic judgmen quali y ac oss six
eme ging economies. The design used seconda y da a de i ed om mul i-coun y co po a e go e nance
da abases, audi o e sigh epo s, and o ensic accoun ing indices compiled by he Associa ion o Ce i ied
F aud Examine s, In e na ional Fede a ion o Accoun an s, and Wo ld Bank go e nance indica o s be ween
2020 and 2024. This app oach enabled obus c oss-coun y compa ison and alignmen wi h global bes
p ac ices in o ensic go e nance esea ch (Ch is ensen e al., 2020; Knechel & Sha ma, 2022; Galle a e al.,
2021). The s udy popula ion consis ed o blue-chip co po a ions and publicly lis ed i ms in India, Sou h A ica,
Egyp , Tü kiye, Indonesia, and Vie nam ha me minimum go e nance disclosu e equi emen s. A pu posi e
sampling app oach iden i ied 90 co po a ions wi h consis en da a on o ensic e hics and o e sigh indica o s,
ollowing sample adequacy h esholds es ablished in op- ie jou nals using compa able c oss-na ional
go e nance s udies (Hai e al., 2020). The sample size ep esen ed a balance be ween s a is ical powe and
c oss-coun y di e si y, e lec ing he ep esen a i eness p inciple endo sed in ad anced go e nance modeling.
Da a we e ex ac ed om e i ied ins i u ional sou ces including he OECD Audi Quali y Da abase,
T anspa ency In e na ional indices, and IFAC o ensic audi eposi o ies o ensu e eliabili y. The da a
collec ion p ocess ocused on a iables de ined in he concep ual model: e hical accoun abili y (in eg i y
s anda ds, con iden iali y compliance, and ai epo ing), ins i u ional o e sigh ( egula o y e ec i eness), and
o ensic skep icism ou comes ( aud de ec ion, audi judgmen , epo ing eliabili y, and s akeholde us ). Da a
spanned i e yea s o cap u e empo al consis ency and a oid single-pe iod bias. The analysis applied S uc u al
Equa ion Modeling using AMOS 28 and Sma PLS 4 o pa ame e es ima ion, suppo ed by mul ile el
eg ession o accoun o coun y-le el e ec s. The gene al mul i a ia e o m o he model was exp essed as Y =
α + β1X1 + β2X2 + β3X3 + δ′Z + ε and ex ended o include mode a ion e ec s as Y = α + β1X1 + β2X2 +
β3X3 + δ′Z + θ1(X1•Z) + θ2(X2•Z) + θ3(X3•Z) + ε, whe e Y ep esen ed o ensic skep icism ou comes, X1-X3
cap u ed e hical accoun abili y dimensions, and Z deno ed ins i u ional o e sigh mechanisms. Model i indices,
including RMSEA, CFI, TLI, and SRMR, we e compu ed o alida e measu emen in eg i y and heo e ical
obus ness, mee ing global s anda ds o empi ical esea ch (Hai e al., 2020). E hical conside a ions ollowed
in e na ional academic and p o essional guidelines; da a we e publicly a ailable and agg ega ed o p e en
con iden iali y b eaches, ensu ing compliance wi h ins i u ional e iew no ms. Dissemina ion a ge ed o ensic
accoun ing bodies, in e na ional egula o s, and academic audiences h ough con e ences and high-impac
jou nals. Dissemina ion impac was measu ed by ci a ion acking, c oss- eposi o y downloads, and expe
adop ion in o ensic aining amewo ks o e alua e knowledge ans e and global in luence.
4. Da a Analysis and Discussion:
This sec ion p esen s analy ical indings de i ed om he Global Fo ensic Skep icism Model (GFSM),
which ex ends he Theo y o he Fi m. The analysis explo es how e hical accoun abili y and ins i u ional
o e sigh shape o ensic skep icism ou comes ac oss six eme ging economies. The esul s alida e heo e ical
ela ionships h ough mul i-coun y da a d awn om 90 co po a ions in India, Sou h A ica, Egyp , Tü kiye,
Indonesia, and Vie nam, all ep esen ing high-go e nance, blue-chip en i ies.
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4.1 Desc ip i e Analysis:
The desc ip i e analysis ou lines cen al ends wi hin each cons uc o he GFSM, emphasizing how
e hical, s uc u al, and beha io al go e nance p ac ices con ibu e o o ensic judgmen quali y and aud
de ec ion accu acy. These indings quan i y di e ences ac oss egions, p o iding empi ical g ounding o
ex ending he Theo y o he Fi m o o ensic e hics and accoun abili y con ex s.
4.1.1 E hical Accoun abili y:
E hical accoun abili y e lec s he in e nalized mo al discipline ha d i es o ensic in es iga o s’
independence and judgmen . I comp ises in eg i y s anda ds, con iden iali y compliance, and ai epo ing
p ac ices ha educe agency cos s wi hin o ensic in es iga ions.
4.1.1.1 In eg i y S anda ds:
In eg i y s anda ds cap u e how s ongly in es iga o s adhe e o u h ulness and objec i i y ac oss
egions. Table 4.1: Desc ip i e S a is ics on In eg i y S anda ds ac oss Six Eme ging Economies
Coun y
Mean Sco e
S d. De .
Compliance Ra e (%)
Rank
India
4.6
0.38
92
1
Sou h A ica
4.5
0.41
89
2
Indonesia
4.4
0.44
87
3
Tü kiye
4.3
0.46
85
4
Egyp
4.1
0.48
83
5
Vie nam
4.0
0.50
81
6
Table 4.1 shows consis en ly high in eg i y sco es ac oss all coun ies, wi h India and Sou h A ica
leading. This pa e n con i ms ha s ong e hical alues di ec ly shape audi independence and o ensic
soundness. In eg i y co ela es wi h educed oppo unis ic managemen beha io , consis en wi h Jensen and
Meckling’s heo e ical iew ha mo al discipline lowe s agency cos s. Compa ed wi h indings by Ch is ensen
e al. (2020) and Knechel and Sha ma (2022), he p esen esul s emphasize ha e hical no ms ac as sel -
egula o y con ols equal in impo ance o o mal legal manda es. The ou comes ex end he Theo y o he Fi m
by demons a ing ha in eg i y-based sel -discipline unc ions as a s a egic go e nance mechanism ha
imp o es o ensic eliabili y ac oss bo de s.
4.1.1.2 Con iden iali y Compliance:
Con iden iali y compliance e e s o how well o ensic p o essionals p ese e in es iga i e sec ecy
while main aining anspa ency o o e sigh .
Table 4.2: Con iden iali y Compliance among Fo ensic Teams
Coun y
Compliance Index
S d. De .
B each Incidence (%)
Rank
Sou h A ica
4.5
0.42
3.2
1
India
4.4
0.43
3.9
2
Tü kiye
4.3
0.45
4.1
3
Indonesia
4.2
0.46
4.8
4
Egyp
4.0
0.47
5.2
5
Vie nam
3.9
0.48
6.0
6
Table 4.2 indica es Sou h A ica’s supe io compliance, ollowed closely by India. These indings
alida e he GFSM’s claim ha con iden iali y and anspa ency mus coexis o sus ain o ensic c edibili y. The
low b each incidence suppo s he no ion ha e hical es ain is a manage ial asse minimizing in o ma ion
asymme y. The esul s align wi h Tepalagul and Lin (2015), who emphasized he independence-con iden iali y
link as a key d i e o audi quali y. By quan i ying his ela ionship, he model in oduces con iden iali y
compliance as a measu able de e minan o educed agency isk, illing a heo e ical gap wi hin he adi ional
Theo y o he Fi m whe e such beha io al cons uc s we e no explici ly de ined.
4.1.1.3 Fai Repo ing P ac ices:
Fai epo ing p ac ices measu e he deg ee o ac ual, unbiased p esen a ion in o ensic indings ac oss
ju isdic ions. Table 4.3: Fai Repo ing P ac ice Sco es ac oss Coun ies
Coun y
Repo ing Fai ness Index
S d. De .
Bias Cases (%)
Rank
India
4.5
0.39
4.2
1
Tü kiye
4.4
0.40
4.6
2
Indonesia
4.3
0.42
5.0
3
Sou h A ica
4.3
0.44
5.1
4
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Coun y
Repo ing Fai ness Index
S d. De .
Bias Cases (%)
Rank
Egyp
4.1
0.47
6.2
5
Vie nam
3.9
0.49
6.5
6
Table 4.3 e eals India’s leading adhe ence o ai epo ing, ollowed by Tü kiye. The da a suppo he
model’s asse ion ha e hical ai ness enhances s akeholde s’ us and audi c edibili y. These indings align
wi h Dowling e al. (2019), who highligh ed ha anspa en epo ing unde egula o y o e sigh imp o es
compliance and educes misconduc . The esul s ex end agency heo y by showing ha e hical epo ing is no
me ely compliance beha io bu a go e nance inno a ion educing moni o ing cos s. Globally, his insigh
unde sco es how eme ging ma ke s a e con e ging owa d in eg i y-led co po a e accoun abili y, ede ining
go e nance as a sha ed socie al unc ion a he han a na ow audi p e oga i e.
4.1.2 Ins i u ional O e sigh Mechanisms:
Ins i u ional o e sigh mode a es how e hical accoun abili y ansla es in o in es iga i e pe o mance.
I includes he s eng h o audi egula o s, p o essional boa ds, and inancial c ime au ho i ies.
Table 4.4: E ec i eness o Ins i u ional O e sigh Mechanisms
Coun y
O e sigh E ec i eness Sco e
En o cemen Cases Handled
Public Disclosu e Index
Rank
Sou h A ica
4.6
95
0.88
1
India
4.5
92
0.84
2
Tü kiye
4.3
88
0.81
3
Indonesia
4.2
85
0.79
4
Egyp
4.1
82
0.77
5
Vie nam
3.9
78
0.74
6
Table 4.4 shows ha coun ies wi h s ong egula o y amewo ks, such as Sou h A ica and India,
demons a e mo e e ec i e o e sigh and anspa ency. These indings ein o ce he GFSM’s p emise ha
ins i u ional s eng h enhances o ensic accoun abili y and educes e hical lapses. The esul s co espond wi h
Galle a e al. (2021), who ound ha obus go e nance mechanisms imp o e audi independence. Ex ending
he Theo y o he Fi m, he da a in oduce ins i u ional o e sigh as a o mal mode a ing o ce mi iga ing
p incipal-agen con lic s by ein o cing e hical en o cemen . Globally, he e idence sugges s ha sus ained
o e sigh ans o ms eme ging ma ke s in o sel -co ec ing sys ems o e hical assu ance, b idging he his o ical
gap be ween egula ion and beha io .
4.1.3 Fo ensic Accoun ing Skep icism Ou comes:
Fo ensic skep icism ou comes ep esen he ul ima e es o e hical accoun abili y’s impac on
p o essional pe o mance. These include aud de ec ion, judgmen quali y, epo ing eliabili y, and s akeholde
us . Table 4.5: Agg ega e Fo ensic Accoun ing Skep icism Indica o s
Coun y
F aud De ec ion
Accu acy (%)
Audi Judgmen Quali y
(Mean)
Repo ing Reliabili y
Index
S akeholde T us
(%)
India
91
4.6
0.85
88
Sou h
A ica
89
4.5
0.84
87
Tü kiye
86
4.4
0.81
83
Indonesia
85
4.3
0.80
82
Egyp
82
4.1
0.78
79
Vie nam
80
4.0
0.76
77
Table 4.5 highligh s India’s leading pe o mance in all ou skep icism indica o s, emphasizing i s
ad anced o ensic ma u i y. The da a con i m a posi i e ela ionship be ween e hical accoun abili y and
skep icism ou comes (B = 0.325, p < .05). This aligns wi h Ch is ensen e al. (2020) bu di e ges om indings
in less o malized o e sigh con ex s whe e he link weakens. The esul s show ha anspa en e hics egimes
enhance bo h judgmen and aud de ec ion capabili ies, indica ing ha mo al and s uc u al sys ems ein o ce
each o he . These ou comes expand agency heo y by illus a ing ha accoun abili y-based skep icism ac s as a
sel - egula ing go e nance o ce educing asymme ic in o ma ion. In global deba es, hese indings eposi ion
eme ging ma ke s as inno a o s o e hical esilience a he han passi e egula o y adop e s. Fo policy, hey
sugges ha o ensic capaci y building should p io i ize e hical ins i u ionaliza ion o e p ocedu al compliance.
4.2 Diagnos ic Tes s Analysis:
This pa applies diagnos ic es s o alida e da a eliabili y and ensu e model obus ness unde he
Global Fo ensic Skep icism Model (GFSM). The es s chosen a e he Tes o No mali y and he
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Mul icollinea i y Tes , which a e essen ial o e i y da a dis ibu ion and independence among p edic o s. These
we e selec ed because hey di ec ly assess he quali y and s uc u e o mul i-coun y go e nance da ase s ha
de e mine e hical accoun abili y and ins i u ional o e sigh mechanisms wi hin o ensic accoun ing con ex s.
4.2.1 Tes o No mali y:
The no mali y es assesses whe he he da a o e hical accoun abili y and ins i u ional o e sigh a e
symme ically dis ibu ed a ound he mean. A no mal dis ibu ion ensu es ha pa ame ic analysis and
hypo hesis es s a e alid o c oss-coun y eg ession es ima ion.
Table 4.6: No mali y Tes Resul s Using Shapi o-Wilk S a is ic
Va iable
Coun y
S a is ic (W)
Sig. (p)
Dis ibu ion
Decision
E hical Accoun abili y
India
0.983
0.254
No mal
Accep H0
E hical Accoun abili y
Sou h A ica
0.979
0.310
No mal
Accep H0
E hical Accoun abili y
Tü kiye
0.968
0.182
No mal
Accep H0
E hical Accoun abili y
Indonesia
0.972
0.209
No mal
Accep H0
E hical Accoun abili y
Egyp
0.962
0.170
No mal
Accep H0
E hical Accoun abili y
Vie nam
0.958
0.161
No mal
Accep H0
Ins i u ional O e sigh Mechanisms
Mul i-coun y a e age
0.975
0.230
No mal
Accep H0
Table 4.6 indica es ha all p- alues exceed 0.05, con i ming no mal dis ibu ion ac oss da ase s. This
pa e n shows da a s abili y and consis ency in e hical accoun abili y and o e sigh a iables ac oss coun ies.
Such symme y suppo s Jensen and Meckling’s heo e ical claim ha balanced go e nance incen i es educe
beha io al dis o ions in i m-le el decision-making. The indings imply ha o ensic e hical beha io s a e no
isola ed cul u al ou comes bu pa o a globally s able dis ibu ion o mo al conduc among p o essional
accoun an s. This challenges olde concep ions ha go e nance e hics a y unp edic ably be ween eme ging and
de eloped economies.
The no mali y ou comes enhance he alidi y o c oss-coun y compa isons, con i ming ha o ensic
pe o mance ollows p edic able pa e ns. This egula i y con ibu es o he Theo y o he Fi m by sugges ing
ha e hical accoun abili y ope a es as a global beha io al equilib ium ha minimizes manage ial agency
con lic s. Compa ed wi h e idence om Ch is ensen e al. (2020) and Knechel and Sha ma (2022), hese esul s
ex end he heo y’s each beyond inancial pe o mance in o mo al consis ency as a quan i iable o ganiza ional
ea u e. The no el y lies in es ablishing o ensic e hics as a s a is ically s able cons uc ac oss di e se
ins i u ional con ex s, implying con e gence owa d sha ed accoun abili y s anda ds in global go e nance.
4.2.2 Mul icollinea i y Tes :
The mul icollinea i y es examines whe he independen sub- a iables unde e hical accoun abili y
in eg i y s anda ds, con iden iali y compliance, and ai epo ing p ac ices a e excessi ely co ela ed. High
collinea i y could dis o eg ession es ima ions and unde mine he in e p e i e alue o he GFSM model.
Table 4.7: Va iance In la ion Fac o (VIF) and Tole ance Values o Mul icollinea i y Tes
Va iable
VIF
Tole ance
Decision
In eg i y S anda ds
1.42
0.704
No Mul icollinea i y
Con iden iali y Compliance
1.55
0.646
No Mul icollinea i y
Fai Repo ing P ac ices
1.63
0.613
No Mul icollinea i y
Ins i u ional O e sigh Mechanisms
1.88
0.531
No Mul icollinea i y
Table 4.7 shows all VIF alues below 2.0, con i ming ha he a iables a e s a is ically independen
and sui able o eg ession es ima ion. This inding s eng hens he s uc u al soundness o he GFSM, p o ing
ha each cons uc cap u es unique dimensions o o ensic beha io . E hical accoun abili y ope a es as a
mul idimensional go e nance d i e , whe e in eg i y, con iden iali y, and ai ness unc ion as dis inc ye
complemen a y o ces in mi iga ing agency p oblems.
The esul s e eal ha p o essional e hics in o ensic in es iga ions a e no o e lapping dimensions bu
sepa a e go e nance pilla s. This expands he Theo y o he Fi m by e aming e hics no as a singula cul u al
no m bu as a modula sys em o in e ela ed p o essional con ols ha collec i ely sus ain anspa ency.
Compa ed wi h Dowling e al. (2019) and Galle a e al. (2021), who highligh ed ins i u ional egula ion as he
main d i e o audi quali y, his s udy iden i ies e hical in e dependence as an endogenous go e nance
mechanism. These insigh s p o ide a global con ibu ion by posi ioning e hical accoun abili y as a decen alized
sel - egula ing s uc u e ha minimizes mo al haza d wi hou equi ing excessi e ex e nal en o cemen .
In global deba es, his independence among e hical cons uc s implies ha eme ging economies can
build o ensic esilience by s eng hening speci ic e hical dimensions a he han elying solely on impo ed
o e sigh amewo ks. The esul s ad oca e o di e en ia ed capaci y-building s a egies, sugges ing ha
ein o cing in eg i y s anda ds alone can enhance o ensic quali y e en in low- egula ion se ings. Hence, he