Code Of Accounting Prefession

The code of ethics is defined as a common grip that binds each member, as well as acting sutu pattern that applies to every member of the profession. The main reason the need for a high level of professional action by any profession is the need for public confidence on the quality of services provided by the profession, regardless of each - each individual who provides such services.

Ethics can be broadly defined as a set of moral principles or values. Every organization has a set of values ​​like that, even though we pay attention or do not pay attention to it explicitly. The need for ethics in society is quite important, so many common ethical values ​​incorporated into the legislation.

Ethical behavior is the foundation of modern civilization underlines the success of the functioning of virtually every aspect of society, from everyday family life to law, medicine, and business. Ethics (ethically) refers to a system or code of conduct based on moral obligations which shows how an individual should behave in society.

Ethical behavior is also the foundation of modern professionalism. Professionalism broadly defined, refers to the behavior, purpose, or qualities that characterize or characterize members of a profession or professional people. The entire profession perilakuyang set rules or code defines ethical behavior for members of the profession. Professional code of conduct consists of: Principles - principles, Code of Ethics, Interpretation of the Code of Ethics and Code of Ethics.

AICPA Code of Professional Conduct consists of two parts:

• Principles of Professional Conduct (Principles of profesionnal Conduct); declare acts - ideal behavior and conduct.
• Code of Conduct (Rules of Conduct); establish minimum standards.

Six Principles of Professional Conduct:

1. Responsibilities: In carrying out its responsibilities as professionals, members must implement the professional judgment and morals in the whole family.
2. Public interest: Members must accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism.
3. Integrity: To maintain and broaden public confidence, members must implement all professional responsibilities with a sense of integrity.
4. Objectivity and independence: Members must maintain objectivity and conflict-free assignment in the execution of professional responsibilities.
5. Accuracy and precision: Members must observe technical standards and standards of professional conduct.
6. The scope and nature of the services: Members in public practice shall observe the principles of Professional Conduct in determining the scope and nature of the services to be provided.

IFAC CODE OF ETHICS

The code of ethics drawn up by SPAP is a code of ethics International Federations of Accountants (IFAC), which is translated, so this code is not a new thing then adjusted to IFAC, but adopted from the source of IFAC. So there is no significant difference between the SAP and the IFAC code of ethics. Adoption by the Council SPAP ethics is certainly in line with the mission of Indonesia's accountants did not champion. Moreover, the mission of the International Federation of Accountants as the so-called constitution is to develop a global improvement accounting profession with harmonized standards so as to provide the highest quality service consistently to the public interest. A member of IFAC and KAP should not set standards that are less precise than the rules in the code of conduct. Professional accountants need to understand the differences in the rules and guidelines of several regional jurisdiction, unless prohibited by law or legislation

Fundamental Principles of Ethics IFAC:

1. A professional accountant should act decisively and honest in all professional and business relationships.
2. Seorag professional accountant should not allow bias, conflict of interest, or under penguruh others sehinggamengesampingkan business and professional judgment.
3. Professional competence and prudence. An accountant profesionalmempunyai duty to maintain professional knowledge and skills on an ongoing basis at a rate dipelukan to menjaminseorang client or employer receives competent professional services yangdidasarkan on development practices, legislation, and current techniques.Seorangakntan professionals must work diligently and follow professional standards thirsty work diligently and follow the standards profesionaldan accepted technique in providing professional services.
4. A professional accountant should respect kerhasiaaninformasi gained as a result of professional relationships should not be author of the bisnisserta any information to third parties without izinyng enar and specific, unless there are legal obligations or professional right to express them.
5. Professional Conduct. A professional accountant should comply with the law and relevant legislation and should avoid any action that dapatmendiskreditkan profession.

CODE IAI

The code of ethics is a system of norms, values ​​and professional rules written expressly stating what is right and good, and what is not right and not good for the professionals. Indonesian Institute of Accountants Code of Conduct is a code of conduct, ethical accountants in meeting their professional responsibilities

IAI-KASP ethical rules contains seven basic principles of ethical behavior of auditors and four other general guidelines with regard to the ethical behavior. IAI seven core principles are:

1. Integrity

Integrity relates to the profession of auditors who can be trusted for upholding truth and honesty.Integrity is not only a form of honesty but also trustworthiness, act fairly and based on the actual situation. This is demonstrated by the auditor when it raises personal excellence when providing professional services to the institution where the auditors' work and to auditannya.

2. objectivity

Auditor objective is an impartial auditor so that the independence of the profession can be maintained. In taking a decision or action, he may not act on the basis of prejudice or bias, conflict of interest, or the influence of others. Objectivity is practiced when the auditor take decisions in its audit activities. Auditor objective is the auditor who make decisions based on all available evidence, and not because of the influence or based on opinions or personal prejudice or pressure and influence of others.

3. Competence and Precautions

In order to provide quality audit services, the auditor must have and maintain competence and diligence. For that auditors should always enhance the knowledge and expertise of the profession to the extent necessary to ensure that the institution where he works or audited can receive the benefits of the service profession based development practices, rules-danteknik latest techniques.Based on this basic principle, the auditor can only perform an audit if he has the necessary competence or using the help of experts who are competent to perform his duties satisfactorily.

4. secrecy

Auditors should be able to maintain the confidentiality of information obtained in conducting the audit, although the overall audit process may be conducted openly and transparently. The information is the property of the audited, for the auditor must obtain special approval if they want to express, unless their disclosure obligations for legislation. This secrecy must be maintained until any time even when the auditor has stopped working at the office. In principle, this confidentiality, auditors are prohibited from using the information in its possession for their own interests, for example, for financial gain.

5. The principle of confidentiality does not apply in the following situations:

Disclosure permitted by the authorities, such as audited and the institution where she worked. In this disclosure, the auditor should consider the interests of all parties, not only he, the audited, the institution, but also including other parties who may be affected by the disclosure of this information.

6. Accuracy of Acting

The auditor should be able to act consistent in maintaining the reputation of the profession and public sector institutions accounting profession and refrain from any actions that could discredit himself as a professional institution or a professional auditor. Appropriate measures need to be promoted through leadership and exemplary. If the auditor know of another auditor perform actions that are not true, then the auditor must take the steps necessary to protect the public, the profession, professional institutions, the institution where she worked and members of other professions from the actions of another auditor is not correct it.

7. Technical and professional standards

The auditor should conduct an audit in accordance with auditing standards applicable, which includes technical and professional standards relevant. These standards are set by the Indonesian Institute of Accountants and the Government of the Republic of Indonesia. In the audit of public agencies, there are also auditing standards they set and apply to auditors, including the rules of conduct established by the agency where he works. In the event of any discrepancy and / or conflict between the auditing standards and rules of the profession with auditing standards and rules of the agency, then the problem is returned to the respective institutions and the rule standard setter.

RULES AND INTERPRETATION OF ETHICS

Interpretation of Rules of Ethics is an interpretation issued by the Agency established by the Association after considering feedback from members, and other interested parties, as a guide in the application of ethics rules, without intended to limit the scope and application. Statement of Professional Ethics that applies today can be used as Ethics Rules Interpretation and or until the issuance of a new interpretation of the rules and to replace it.

1. Ethics rules:

• Independence, integrity, and Objectivity
• General Standards and Accounting Principles
• Responsibilities to Clients
• Responsibilities to colleagues
• Responsibility and other practices

1. interpretation of Ethics

In practice there is no ethical absolutes. Ethical standards also vary depending on the social sebuahkomunitas, depending on culture, norms, and values ​​embraced by the community. Both the community in its form as a region, country, religion or community group. There is no universal ethics.

Outline of the Code of Ethics and Professional Conduct

1. Contribution to society and human welfare.
2. Avoid hurting others.
3. Be honest and trustworthy
4. Be fair and do not discriminate against the values ​​of equality, tolerance, respect for others, and the principles of equal justice in a set order.
5. Property rights including the copyright and patent rights.
6. Give proper credit for intellectual property.
7. Respect the privacy of others
8. Trust

INTERPRETATION OF RULES OF CONDUCT According to AICPA

Indonesian Institute of Accountants Code of Ethics is intended as a guide and rules for all members, whether practicing as a public accountant, worked in the corporate world, in government agencies, as well as in the world of education in the fulfillment of their professional responsibility rules.

The purpose of the accounting profession is fulfilling its responsibilities with the highest professional standards, reached the highest levels of performance, with an orientation to the public interest. To achieve these objectives, there are four basic requirements that must be met, namely:

1. Society needs the credibility of information and information systems.
2. Required individual who can clearly be identified by the service users.
3. Quality of Services. The presence of the belief that all services obtained from the accountant provided with the highest performance standards.
4. Accountant service users should be able to feel confident that there is a framework of professional ethics underlying the provision of services by accountants.

Indonesian Institute of Accountants Code of Ethics consists of three parts:

1. Principles of Ethics

Ethical Principles provide a basic framework for Ethics Rules, which regulates the implementation of the provision of professional services by the member.

2. Ethics rules

Ethical Principles provide a basic framework for Ethics Rules, which regulates the implementation of the provision of professional services by the member. Principles of Ethics was passed by Congress and apply to all members,

3. Interpretation of Ethics Rules

Ethics rules approved by the Meeting of the Association Members and only binds members of the Association concerned.

Ethical behavior in the Accounting Profession

Public accounting profession produces a wide range of services to the people, namely service assurance, attestation services, and services nonassurance. Service assurance is an independent professional services that improve the quality of information for decision makers.Attestation services consist of audit, inspection (examination), review, and agreed procedures (the agreed upon procedure).Attestation services is a statement of opinion, consideration of an independent and competent person on whether the assertion of an entity in accordance in all material respects, with the criteria established. Nonassurance services are services produced by a public accountant in which he did not give an opinion, negative beliefs, a summary of findings, or other forms of belief. Examples nonassurance services produced by the public accounting profession is a compilation services, taxation services, consulting services.

CPAs is a practicing accountant in a public accounting firm, which provides various types of services regulated under the Public Accountants Professional Standards, namely auditing, attestation, accounting and review, and consulting services. Independent auditor is a public accountant who carry out audits of historical financial statements that provide audit services on the basis of auditing standards set forth in the Public Accountants Professional Standards.Indonesian Institute of Accountants Code of Conduct translated into Public Accountants Compartment Ethics to regulate the behavior of accountants who are members of IAI who practiced in the public accounting profession.

1. As the accounting profession and the Role of Accountants

The accounting profession is a profession that provides attestation or non attestation services to the public with limited code of conduct that exist. Accounting as a profession have an obligation to ignore the interests of personal and professional ethics to follow predetermined.Obligations as a professional accountant has three obligations, namely; competence, objectivity and prioritize integrity. What is meant by the accounting profession are all occupations that use skills in accounting, including field work public accountants, internal accountants who work on industrial companies, finance or trade, an accountant who worked in the government, and accountants sebagaipendidik.

In a narrow sense, the accounting profession is the scope of work performed by accountants as a public accountant that typically consists of the work of audit, accounting, tax and management consulting. The accounting profession is a profession that provides attestation or non attestation services to the public with limited code of conduct that exist.

Accounting plays an important role in economic and social as every decision of a financial nature should be based on the accounting information. This situation makes the accounting as a profession that is needed existence within the business organization. Special skills such as business data processing into computer-based information.Examining the financial and non-financial, material mastery of tax law are things that can provide more value for the accounting profession.The development of the accounting profession in line with the type of accounting services required by people who are gradually increasing complexity. Accountant degree is a professional degree a person with a weight that can be equated with other occupations. For example in law or engineering fields. Broadly speaking, the accounting profession can be classified into 4 groups:

1. Public Accountants (Public Accountants) is the independent accountant who beperan to provide his services on the basis of certain payments. A certified public accountant can perform the examination (audit), for example, the taxation services, management consulting services, and drafting services management system.
2. Accounting Intern (Internal Accountant) is an accountant who works in a company or organization. Internal accountant is also called the company's accountants or management accountants. His job was to develop accounting systems, preparing financial reports to external parties, to prepare financial statements to corporate leaders, preparing budgets, handling tax matters and internal audit.
3. Government Accountants (Government Accountants) is an accountant who worked in government institutions, eg in the office of Financial and Development Supervisory Agency (BPKP), the Supreme Audit Agency (BPK).
4. Educators accountant is an accountant in charge of accounting education, conduct research and development of accounting, teaching, and develop accounting education curriculum in college.

1. The types of existing Accounting Profession, among others:
2. Certified Public Accountants

Public accountant is the only accounting profession who provide independent audit services. Namely providing services to inspect, analyze, and then give an opinion / assertions on the company's financial statements in accordance with generally acceptable accounting principles.

2. Management accountant

Management accountants accounting profession is a regular duty or working in enterprises. Management accountants tasked to prepare financial statements in the company.

3. Accounting Educators

Accountant accounting profession educator is a regular duty or work in educational institutions, such as the sebuh university or other educational institution. Management accountants tasked with providing the teaching of accounting to the parties that need.

4. Internal accountant

The internal auditor is the auditor who works at a company and therefore status as an employee of the company. Audit tasks which do primarily intended to assist the management company where he worked.

5. Consultants SIA / SIM

One profession or job that can be done by outside accountants whose main job is to provide consultations on various issues related to information systems in a perusahaan.Seorang Consultants SIA / SIM is required to be able to master the system of computerized technology in addition to master the science of accounting into daily meals , Usually the services provided by consultants SIA / SIM only certain parties who use these services.

6. Government Accountants

Government Accountants is a professional accountant who worked in government agencies whose main duty conduct an examination of the financial liability presented by organizational units within the government or financial liability presented by organizational units within the government or financial accountability directed at the government. Although there are many accountants who work in government agencies, but generally called a government accountant is an accountant who worked at the Financial Supervisory Agency and Division (BPKP) and the Supreme Audit Agency (BAPEKA), and the tax agency.

7. Public expectations

Public expectation is that in kemukaan response by the public about Yag ethics prevailing in the wider community. There are many responses circulating out there are positive and some are negative depending on a person who believes. Because a sifatanya expectation is free but does not reduce ethics so that there is no limit so it's not too far off from the topic of his discussion. The people generally say as professional accountants in particular in the field of accounting.Because they have a skill that is more in the field than the layman so that people hope that the accountants can comply with the standards and values ​​prevailing at the same time the environment of the accounting profession, so that people can rely on the belief in a given job. In this case, an accountant employed by an organization or KAP, there will be no statutory or contractual responsibility towards the owner of the company or publik.Walaupun Thus, as responsibilities on employers, public professional accountant mengekspektasikannya to defend the values ​​of honesty, integrity , objectivity and pentingannya rights and responsibilities within the company.

1. Ethical Principles of Accounting

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.

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. 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.

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.

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.

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.

6. secrecy

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.

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.

1. Role of Ethics In Accounting Profession

Any profession that provides services to the community needs the trust of the communities it serves. Public confidence in the quality of public accounting services would be higher, if the profession is to apply high quality standards for the implementation of professional work carried out by members of the profession. Public accounting profession has a role for the community that provide information and improve the quality of information produced for the public / decision makers. One of the fundamental characteristics of the accounting profession, which are extremely important services for the community, the nation's devotion to the community, and commitment to high moral and professionalism. Society / decision makers often require to obtain the services of an accountant with high quality standards. Therefore, the accounting profession sets technical standards or ethical standards that should be used as a guide by accountants, who officially becomes the main members of the profession, in carrying out professional duties. In this the ethical standards required for the accounting profession as an accountant position as the confidence in the face of the possibility of conflicts of interest and independence of an accountant is needed as public confidence in the information.

Ethics rules Compartment Public Accountants is a professional ethics for accountants who practice as a public accountant Indonesia. Ethics rules Compartment Public Accountants sourced from Ethical Principles established by the Indonesian Institute of Accountants. In konggresnya 1973, the Indonesian Institute of Accountants (IAI) for the first time establish a code of ethics for professional accountants.Indonesian Institute of Accountants Code of Ethics consists of three parts:

1. Principles of Ethics
2. Ethics rules
3. Interpretation of Ethics Rules

Ethical Principles provide a basic framework for Ethics Rules, which regulates the implementation of the provision of professional services by the member. Principles of Ethics was passed by Congress and apply to all members, while the Ethics Rules passed by the Association Members Meeting and only binds members of the Association concerned.

1. Ethical behavior in Providing Services Public Accountant

Community, creditors and investors expect a free vote and the impartiality of the information presented in the financial statements by management of the company. Public accounting profession produces a wide range of services for the community, among others:

1. Service assurance is an independent professional services that improve the quality of information for decision makers.
2. Attestation services consist of audit, inspection (examination),review, and agreed procedures (the agreed upon procedure).
3. Attestation services is a statement of opinion, consideration of an independent and competent person on whether the assertion of an entity in accordance in all material respects and criteria established.
4. Non-assurance services are services produced by a public accountant who did not give an opinion, negative beliefs, a summary of findings, or other forms of belief.

Every public accountant as the members of the Indonesian Institute of Accountants and professional staff (both are members of Certified and non-members IICPA) working on a Public Accounting Firm (KAP) should apply Ethics Rules Compartment public accountant or now referred to as the Code of Professional Ethics of Certified Public Accountants in carrying out his duties as a service provider.Indonesian Institute of Accountants Code of Ethics is intended as a guide and rules for all members, whether practicing as a public accountant, worked in the corporate world, in government agencies, as well as in the world of education in fulfilling their professional responsibilities.

Indonesian Institute of Accountants Code of Ethics consists of three parts:

1. Principles of Ethics, provides the basic framework for Ethics Rules, which regulates the implementation of the provision of professional services by the member. Principles of Ethics was passed by Congress and apply to all members.
2. Ethics rules, endorsed by the Association Member Meeting and only binds members of the Association concerned.
3. Interpretation of Rules of Ethics, an interpretation issued by the Agency established by the Association after considering feedback from members, and other interested parties, as a guide in the application of ethics rules, without intended to limit the scope and application.

The companies in a developing country such that it does not just need the capital from its owners, but began to require capital from lenders, and if it arises various companies form limited liability company whose capital comes from the community, public accounting firm start is required and develop. Of the public accounting profession is public creditors and investors expect an impartial independent assessment of the information presented in the financial statements by management of the company. Public accounting profession produces a wide range of services to the people, namely service assurance, attestation services, and services nonassurance. Service assurance is an independent professional services that improve the quality of information for decision makers. Attestation services consist of audit, inspection (examination), review, and agreed procedures (the agreed upon procedure).

Attestation services is a statement of opinion, consideration of an independent and competent person on whether the assertion of an entity in accordance in all material respects, with the criteria established. Nonassurance services are services produced by a public accountant in which he did not give an opinion, negative beliefs, a summary of findings, or other forms of belief. Examples nonassurance services produced by the public accounting profession is a compilation services, taxation services, consulting services.

In general auditing is a systematic process to obtain and evaluate evidence objectively about the state of economic events, with the aim to establish the level of concordance between the statement with the established criteria, as well as the delivery of the results to the user concerned. The terms of the independent auditor, auditing is an objective examination of the financial statements of a company or other organization with the goal to determine whether the financial statements present fairly the financial condition and results of operations of the company or organization.

Public accounting profession is responsible for raising the level of reliability of the financial statements of these companies, so that the financial community obtain reliable financial information as a basis for deciding the allocation of economic resources.

1. Values Ethics vs Engineering Accounting / Auditing
2. Integrity: Each of the actions and words showed his profession perpetrators of transparency, honesty and consistent.
3. Cooperation: Having the ability to work alone or in teams.
4. Innovation: Actors profession is able to add value to the customer and work processes with the new method.
5. Simplicity: Actors profession is able to provide solutions to any problems that arise, and complex problem becomes simpler.

Accounting techniques (accounting technique) are specific rules derived from the principles that explain transaction accounting transactions and events specific events faced by the accounting entity.