Code of Professional Accounting Indonesia
In the ethics of the profession, a profession has a high moral commitment,
which is usually manifested in a special rules that hold true for everyone who
assumed the profession in question. This rule as a rule in carrying out the
profession commonly referred to as a code of conduct that must be met and
adhered to by every profession.
Each profession who provide services to society should have a code of
conduct which is moral principles and regulate professional behavior. The
parties interested in the ethics of the profession is a public accountant, a
provider of accounting information and accounting students.
AICPA Code of Professional Conduct consists of two parts:
1.
Principles of
Professional Conduct states follow - horn and ideal behavior
2.
Code of Conduct
sets minimum standards.
Principles of
Professional Conduct provides a framework for the Code of Conduct.
Additional guidelines for the application of the Code of Conduct is available
through:
1.
Interpretation of
the Code of Conduct (Interpretations of the Rules of Conduct
2.
Verdict (rulings)
by the Professional Ethics Executive Committee.
The code of ethics of accountants Indonesia contains eight principles of
ethics as follows: (Mulyadi, 2001: 53)
1. Responsibility profession
In carrying out its responsibilities as professionals, each member must
always use the moral and professional judgment in all the activities he does.
As a professional, members have an important role in society. In line with
these roles, members have a responsibility to all users of their professional
services. Members also must always be responsible for working with fellow
members to develop the accounting profession, maintain public trust and
responsibility in the profession to regulate itself. Collective efforts of all
members are required to maintain and enhance the traditions of the profession.
2. Public Interest
Each member is obliged to always act within the framework of public
service, honor the public trust, and show commitment to the professionalism.
One main characteristic of a profession is the acceptance of responsibility to
the public. The accounting profession holds an important role in the community,
where the public accounting profession which consists of clients, lenders,
governments, employers, employees, investors, the business and financial world,
and others rely on the objectivity and integrity of accountants in maintaining
the functioning of the business in an orderly manner. This dependence raises
the responsibility of accountants against the public interest. The public
interest is defined as the interest of the people and institutions that served
members as a whole. This dependence causes the attitudes and behavior of
accountants in providing services affect the economic welfare of society and
the state.
The main interest of the accounting profession is to make users understand
that accounting services accounting services performed at the highest
achievement levels in accordance with the ethical requirements necessary to
achieve the level of achievement. And all members bind themselves to respect
the public trust. Public for the trust given to him, members must continually
demonstrate their dedication to achieve a high level of professionalism.
To maintain and enhance public confidence, each member must fulfill their
professional responsibilities with the highest possible integrity.
3. Integrity
Integrity is an element of character that underlie the emergence of
professional recognition. Integrity is the quality of the underlying public
trust and are a benchmark (benchmark) for the members in examining the
decision.
Integrity requires a member to, among other things, being honest and forthright
without sacrificing secret service recipients. Services and public trust should
not be defeated by personal gain. Integrity can receive an innocent mistake and
honest differences of opinion, but does not accept fraud or suppression of
principle.
4. Objectivity
Each member should maintain objectivity and free from conflicts of interest
in fulfilling their professional obligations.
Objectivity is a quality that gives value for services provided member. The
principle of objectivity requires that members be fair, impartial,
intellectually honest, not prejudiced or biased, and free from conflicts of
interest or under the influence of others.
Members work in many different capacities and should demonstrate their
objectivity in various situations. Members in public practice provide
attestation services, tax, and management consulting. The other members prepare
financial statements as a subordinate, conducting internal audit services and
work in the capacity of finance and management in industry, education, and
government. They also educate and train those who want to go into the
profession. Whatever the merit and capacity, members must protect the integrity
of its work and maintain objectivity.
5. Competence and Prudential Professionals
Each member must carry out their professional services with caution,
competence and diligence, and have an obligation to maintain professional
knowledge and skill at the level required to ensure that clients or employers
to benefit from the professional services and the most advanced techniques.
This implies that members have an obligation to carry out professional services
as well as possible according to his ability, in the interests of service users
and are consistent with the responsibilities of the profession to the public.
Competence acquired through education and experience. Members should not
portray themselves have the expertise or experience they do not possess.
Competence indicate the presence of the achievement and maintenance of a level
of understanding and knowledge that allows a member to provide services with
ease and ingenuity. In terms of professional assignment exceeds the
competencies of the members or the company, members are required to conduct a
consultation or submit a client to another party who is more competent. Each
member is responsible for determining the competence of each or judge whether
the education, guidance and adequate consideration needed to be responsible to
fulfill.
6. Confidentiality
Each member shall respect the confidentiality of information obtained
during professional services and should not be put on or disclose such information
without consent, unless there is a right or a professional or legal obligation
to disclose it.
The public interest and the profession demands that professional standards
relating to confidentiality defined that there are guidelines regarding the
nature of nature and extent of the obligation of confidentiality as well as to
the circumstances in which the information obtained during professional
services can or should be disclosed.
Members have an obligation to respect the confidentiality of information
about a client or employer obtained through professional services that it
provides. The obligation of confidentiality continues even after the
relationship between the member and the client or the service ends.
7. Professional Conduct
Each member should behave consistent with the good reputation of the
profession and avoid actions that may discredit the profession.
The obligation to avoid behavior that could discredit the profession must be
met by the members as a manifestation of its responsibility to the recipient of
services, third-party, other members, staff, employers and the general public.
8. Technical Standards
Each member should carry out professional services in accordance with the
technical standards and the relevant professional standards. In accordance with
his expertise and with caution, members have an obligation to carry out the
assignment of service recipients during the assignment in line with the
principles of integrity and objectivity.
Technical standards and professional standards that must be adhered member is a
standard issued by the Indonesian Institute of Accountants. International
Federation of Accountants, regulatory bodies, and the setting of relevant
legislation.
Ethics in Auditing
Auditing Ethics is an attitude and behavior mentatati rules and norms
prevailing in the life of a systematic process for obtaining and assessing the
evidence objectively, relating to the assertion-assertions about actions and
events economy. An auditor in auditing a financial statement must be based on
auditing standards have ditntukan Indonesian Institute of Certified Public
Accountants. Auditing standards are guidelines for the audit of historical
financial statements. Auditing standards consist of ten standards and specified
in the form of Statement on Auditing Standards (PSA). PSA is thus a further
explanation of each standard listed in the auditing standards.
1. Public Trust
Profession an accountant plays an important role in society. This leads to
dependency on the responsibility of an accountant of the interest of the
public, where the public interest is the interest of the general public and
institutions whose services are done thoroughly. This dependence is related to
the attitude and behavior of accountants in conducting their services to the public
services that affect the economic welfare of society and the state.
Public confidence as an independent audit of the service users is essential for
the development of the public accounting profession. Public confidence will be
reduced if there is evidence that the independence of the auditor it turns out
is reduced, even public confidence can also be decreased due to the
circumstances they are sensible (reasonable) are considered to affect the
independence stance. To be independent, the auditor must be intellectually
honest, free from any obligations towards its clients and does not have an
interest with its clients both a management company or owner of the company.
Competence and independence of the auditor in its application will be related
to ethics. Accountants have an obligation to maintain a standard of ethical
conduct their highest to the organization in which they take shelter, their
profession, the community and themselves where accountants have the
responsibility of being competent and to maintain the integrity and objectivity
them.
2. Auditor's Responsibility to the Public
The accounting profession in the community has a very important role in
maintaining the functioning of the business in an orderly manner to assess the
fairness of the financial statements presented by the company. The auditor
should have the responsibility for the financial report that is being done. The
responsibility here is very important for the auditor. The public will demand
an attitude of an auditor professionalism, commitment while doing the job. On a
given public trust is an accountant must continually demonstrate their
dedication to achieve the high level of professionalism. In the code of conduct
is disclosed, accountants not only have a responsibility to clients who pay,
but also has a responsibility as well to the public. The public interest is
defined as the interest of the people and institutions that served as a whole.
3. Basic Auditor's Responsibility
The Auditing Practice Committee, which is the forerunner of the Auditing
Practices Board, in the 1980s, giving a summary (summary) of the auditor's
responsibilities:
1. Planning, Control and
Recording.
Auditors need to plan, control and record his work.
2. Accounting System.
The auditor should ascertain the system for recording and
processing of transactions and assess their adequacy as a basis for preparing the
financial statements.
3. Audit Evidence.
The auditor would obtain audit evidence that is relevant
and reliable to provide a rational conclusion.
4. Internal
Control.
If the auditors wish to place confidence in the internal
controls, should ensure and evaluate the controls and perform compliance tests.
5. Revisited
Relevant Financial Statements.
Auditors
carry out review the relevant financial statements as necessary, in conjunction
with the conclusions drawn by other audit evidence obtained, and to provide a
rational basis for the opinion on the financial statements.
4. Independence Auditor
The independence is a state free from influence, not controlled by the
other party, not
dependent on others (Mulyadi and Puradireja, 2002: 26).
In the SPAP (IAI, 2001: 220.1) auditors are required to be independent, meaning
not easily influenced, because he was carrying out work in the public interest
(differentiated in terms he practiced as an internal auditor).
There are three aspects of the independence of the auditor, as follows:
a. Independence in fact (independence in fact). This means
that the auditor must have a high honesty, aligned to objectivity.
b. Independence in appearance (independence in appearance).
This means that the views of others against themselves auditor in connection
with the audit.
c. Independence in competence (independence from the corner
of his craft). The independence from the standpoint of expertise is closely
linked with the auditor's professional proficiency.
5. Capital
Market Regulation and Regulator of the Independence of Certified Public Accountants
Law Capital Market Law No. 8, 1995 gives the sense of capital markets more
specific, namely, "the activities concerned with the public offering and
trading of securities, public companies relating to securities issuance, as
well as institutions and professions related to the effect". The capital
market has a very big role in the Indonesian economy. the institution in charge
to direct, control, and monitoring the daily activities of the capital market
in Indonesia is the Capital Market Supervisory Agency or Bapepam. Bapepam has
the authority to grant permission, approval, registration to capital market
participants, the process of registering within the framework of the public
offering, issuing the implementing regulation of the law in the areas of
capital markets, and enforcing the law for any infringement of legislation in the
field of market capital.
One Bapepam supervisory duties is to provide protection to investors from
harmful activities such as falsification of data and financial statements,
window dressing, and others by issuing implementing regulations in the capital
market. In protecting investors from the inaccuracy of data or information, as
the regulator Bapepam has issued several regulations related to data presented
kereablean issuers in both the annual report and the financial statements of
the issuer. The provisions that have been issued by Bapepam include Regulation
No. VIII.A.2 / Decision of Chairman of Bapepam Number: Kep-20 / PM / 2002 on
the Independence Accountant Provide Audit Services in Capital Market.
Etika Dalam Kantor Akuntan Publik
A.
Business Ethics of
Certified Public Accountants
Business Ethics is a way to conduct business activity, which covers all
aspects relating to individuals, companies and communities. Business Ethics in
a company can establish the values, norms and behavior of employees as well as
leaders in building a fair and healthy relationship with customers / partners,
shareholders, the community.
In carrying out his profession an accountant in Indonesia are governed by a
code of professional conduct by the name of the Indonesian Accountants
Association code of ethics which is an order of ethical and moral principles
that provide guidance to accountants. In addition to the code of ethics of
accountants is also a tool or a means for clients, users of financial
statements or the public in general, about the quality or the quality of
services rendered as a series of ethical considerations as stipulated in the
code of professional conduct. Ethical principles or code of ethics accountant
accountants include:
1.
Responsibility
Profession. In carrying out its responsibilities as professionals, each member
must always use the moral and professional judgment in semuakegiatan does.
2.
Public Interest.
The main interest of the accounting profession is to make users understand that
accounting services accounting services performed at the highest achievement
levels in accordance with the ethical requirements necessary to achieve the
level of achievement.
3.
Integrity. Auditors
are required to have a good attitude as honest, thoughtful, and a high sense of
responsibility for their work.
4.
Objectivity.
Auditors are required to be impartial in carrying out their duties anyone or collect
personal information.
5.
Confidentiality.
Auditors are required to maintain the best possible data or information that
they got in their duties.
6.
Competence.
Auditors are required to have the knowledge, experience, expertise and good
skills in performing their duties.
In carrying out his profession an accountant in Indonesia
are governed by a code of professional conduct by the name of the Indonesian
Accountants Association code of ethics which is an order of ethical and moral
principles that provide guidance to accountants to deal with clients, fellow
members of the profession and also with the public. In addition to the code of
ethics of accountants is also a tool or a means for clients, users of financial
statements or the public in general, about the quality or the quality of
services rendered as a series of ethical considerations as stipulated in the
code of professional conduct.
The case of Enron, xerok, merck, vivendi universal and
bebarapa other similar cases have proved that ethics is indispensable in
business. Without ethics in business, so of trade will not function properly.
We must recognize that accounting is a business, and the primary responsibility
of business is to maximize profit or shareholder value. But if this is done
without regard to ethics, then the result is very detrimental.
There are five rules of ethics established by the
Indonesian Institute of Accountants-Certified Public Accountants Compartment
(IAI-KAP). Five ethical rules are:
1.
Independence,
integrity, and objectivity
Independency. In performing
their duties KAP members must always maintain an independent stance in
providing professional services as stipulated in the Public Accountants
Professional Standards set by IAI. The independent mental attitude must include
independent in fact (in facts) and in appearance (in appearance)
Integrity and Objectivity, in
carrying out their duties KAP members must maintain the integrity and
objectivity, should be free from conflicts of interest (conflict of interest)
and should not allow factors of material misstatement (material misstatement)
knows or divert (subordinated) consideration to other parties.
2.
Common standards
and accounting principles General Standards. KAP members must adhere to the
following standards and their interpretations issued by the relevant regulatory
bodies established standards IAI:
Professional Competence. KAP
members may only perform professional services provision that is decent
(reasonably) expected to be completed with professional competence
Accuracy and precision
Professional. KAP member shall perform professional services provision with
professional precision and accuracy.
3.
Planning and
Supervision. KAP members are required to plan and supervise adequately any
implementation of the provision of professional services.
4.
Sufficient Relevant
Data. KAP members are required to obtain relevant data that is sufficient to
ground worthy of the conclusions or recommendations with respect to the
implementation of professional services.
5.
Compliance with the
Standards. KAP members who carry out the assignment of services auditing,
attestation, review, compilation, management consulting, taxation or other
professional services, shall comply with the standards issued by the governing body
standards set by IAI.
B.
Social
Responsibility public accounting firm as a Business Entity
Social responsibility as a public accounting firm Business Entity is not a
donation or giving free service. Social responsibility of public accounting
firms include the main characteristics of the public accounting profession,
especially the attitude of altruism, namely the interests of the public and
also pay attention to fellow CPAs than the pursuit of profit.
As a business entity like entity - other business entities, public
accounting firm is also required to be concerned with the state of society, not
only in the form of "money" by making a donation, but more complex.
That is, in the Office of Public Accountancy social responsibility of an
institution is not a donation or giving free service. But covering the main
characteristics of the public accounting profession, especially the attitude of
altruism, ie mengutamakn public interest and also pay attention to fellow CPAs
than the pursuit of profit.
In carrying out its responsibilities as professionals, each member must
always use the moral and professional judgment in all the activities he does.
As a professional, members have an important role in society. In line with
these roles, members have a responsibility to all users of their professional
services. Members also must always be responsible for working with fellow
members to develop the accounting profession, maintain public trust and
responsibility in the profession to regulate itself. Collective efforts of all
members are required to maintain and improve the tradition of the public
accounting profession.
C.
Crisis in the
Accounting Profession
The crisis in the public accounting profession can occur because of a lack
of interest young people to this profession, but when seeing the growth of
professional services industry in Indonesia is very much needed and if this
happens it will threaten the existence of this profession.
The accounting profession is a danger that the crisis if every auditor or
attestor acting on the wrong track, and audit opinion would be worthless. An
accountant will be awkward to use tax preparers and financial journalists but
the audit function that became the heart of accounting will be cut out of
practice to donate almost worth - worth abuse. The company carries out
supervision of auditors who are working to implement the internal control,
financial, administrative, sales, data processing, and marketing functions
among the crowds. Public accountant is a container that can assess whether the
financial statements are in accordance with the principles of accounting or
auditing. Differences public accountant with the company's other services,
namely services rendered by the firm will be used as a tool for making
decisions. Obligations of KAP is rendered used for make a decision or have
social responsibility on their business activities.
For accountants behave ethically will affect the image of the firm and to
build public trust and will treat clients well and honestly, then not only
increase revenue but also provide a positive influence for employees of KAP.
Ethical behavior will provide more benefits for managers KAP KAP compared to
other employees. Gaps are in addition to audit also do consulting, financial
reports, preparing tax reports. Therefore, there is a gap diatara accounting
profession and accounting profession must.
D.
Regulatory
Framework Enforcement Ethics in Public Accounting Firm
Anyone committing unethical hence the need for the handling of such
unethical actions. But if similar violations carried out by members of the
public or members of the profession then it is questionable whether the rules
in force still needs to be retained or considered to be developed and adapted
to the changes and development of the environment. In general code of conduct
applicable to the accounting profession in keselurahan if you see a code of
conduct accountants Indonesia contents mostly involve the public accounting
profession. In fact, IAI has compartments educators accountants, management
accountants compartment compartments besides public accountant. Need to think
about the code of conduct concerning the management accountant, accountant
educators, accountants state (BPKP, BPK, taxes).
Cases often occur and become biasannya news concerning public accountant.
The case for the community is often considered as a violation of the code of
ethics, but is often the case in fact constitute a violation or violations of
auditing standards IFRSs. Apart from the above to be able to enforce the code
of conduct there are some things that must be done, and apparently still in
line with one of the general policy board IAI period of 1990 s / d in 1994,
namely:
1.
Completion of the
code of ethics that is publishing the interpretation of the code of conduct
that exist both in response to cases of complaints as well as complaints from
fellow accountants or the general public. This has been done starting from IAI
seminar updating of the code of conduct, hotel Daichi 15 June 1994 in Jakarta
and the 7th congress in Bandung and continue dansedang conducted by the board
committee of codes of conduct at this time.
2.
The judicial
process either by professional regulatory body or board of professional
judgment and follow-up (written warning, suspension and dismissal as a member
IAI),
3.
There should be a
section in the IAI took the initiative to file a complaint either to the
professional regulatory body for violations of the code of conduct although no
complaints from third parties but the attention of the wider community.
Recent developments in the business and professional ethics
Ethics in business is necessary to maintain good relations and fairness in
the business world. Business ethics achieve scientific and academic status with
its own identity, was first raised in America srikat in the 1970s. To
understand the development of business ethics De George distinguishes the five
periods, namely:
1) Situation Formerly At the beginning of the history of philosophy, Plato,
Aristotle and other Greek philosophers, investigating how best to organize
human life together in the country and discuss how economic life and commercial
activity should be regulated. At this time the moral issues surrounding the
economic and business highlights from the standpoint of theology.
2) Period of Transition: The 1960s At this time new developments that can be
called sbagai prsiapan directly to the emergence of business ethics. Marked
rebellion against the power and authority in the United States (US), a student
revolution (in the French capital), the rejection of the establishment
(establishment), at this point also raised anti-consumerism. It gives attention
to education, especially management, ie by entering new subjects into the
curriculum by name coorporate busines and society and social responsibility,
while still using the approaches that vary minus philosophical ethics.
3) Business Ethics Born in the USA: The 1970s are the two factors that
encourage the birth of business ethics in 1970, namely: - A number of
philosophers began to get involved in thinking about ethical issues around
business and business ethics is considered as a response to the right on moral
crisis that was covering the world of business - occurrence of moral crisis
experienced by the business world. At this time they work together, especially
with the economists and the management in the continuing tendency of applied
ethics. Norman E. Bowie said that the birth of business ethics is due to the
interdisciplinary cooperation, which is the prime konferesi of business ethics
at the university diselanggarakan Kansas by philosophi Department along
colledge of business in November 1974.
4) Expanding the European Business Ethics: The 1980s In Western Europe, new
business ethics as science began to develop about 10 years later. It was first
marked by the increasing number of universities in Western Europe, which
included subjects of business ethics. In 1987 also established the European
Ethics Network (EBEN), which is used as a meeting forum between academics from
universities, business schools, entrepreneurs and representatives of national
and international organizations.
5) Business Ethics into Global Phenomenon: In the 1990s, business ethics has
been present in Latin America, ASIA, Eastern Europe and other regions of the
world. In Japan the active conduct of business ethics is the study of the
Institute of Moralogy on Reitaku university in Kashiwa-Shi. In india business
ethics practiced by the Management Center of Human Values established by the
board of directors of the Indian Institute of Management in Calcutta in 1992.
Then on July 25 to 28, 1996, had established the International Society for Business,
Economics, and Ethics (ISBEE) in Tokyo , In Indonesia alone, at some
universities, especially in graduate programs has taught business ethics
courses. Besides popping up anyway organizations conduct special review of
business ethics agencies is the study and development of business ethics
Indonesia (LSPEU Indonesia) in Jakarta.
Now the society is in a phase of business development danekonomi
kapitalismesemenjak kejatuhankomunisme. Thus, capitalism is growing rapidly
without incurring significant barriers. Now bisnistelah menjadibesar abandon
traditional business increasingly pressured, even teraksisikan. The wealth of
private companies in various countries can exceed the wealth of the country.
E.
Peer Review
Peer review is the process of regulation by a profession or an evaluation
process that involves individuals who are qualified in the relevant field.
Method of peer review works to maintain standards, improve performance and
provide credibility. In the world of academic peer review is often used to
determine the suitability of an academic paper for publication.
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