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.