Accounting Profession Ethics In Indonesia Must Be Complied

Accounting Illustration (Pixabay)

YOGYAKARTA In carrying out its profession, an accountant has a code of ethics that must be obeyed and implemented. The ethics of the accountant profession are intended not only to maintain integrity but public trust in the work of accountants. So what are the ethics of the accounting profession that must be fulfilled?

Accountant is a professional title obtained by a university graduate majoring in accounting and has completed Accounting Professional Education (PPAK).

This means that the title is only given to people who have studied accounting at the formal education level.

In a book entitled Indonesian Accountant Code of Ethics published by the Indonesian Accountant Association (IAI), it is stated that the Indonesian Accountant Code of Ethics was adopted from the Handbook of International Code of Ethics for Professional Accountants 2018 edition. The Handbook was published by the International Ethics Standard Board For Accountants (IESBA) from the International Federation of Accountants (IFAC).

The preparation of the Indonesian Accountant Code of Ethics was carried out by IAI in collaboration with IAPI and IAMI, which are supported by the Ministry of Finance's PPPK. With this code of ethics, it is hoped that synergies between professional accounting organizations will emerge and create uniformity in ethical provisions for all accountants in Indonesia.

In the book, there are five basic principles of ethics for Accountants that must be obeyed. The five basic principles of ethics are as follows.

An accountant is obliged to comply with the principle of integrity, namely being straightforward and honest in all professional and business relationships. Integrity also implies openness by saying everything according to the truth.

Accountants are also required to comply with the principles of objectivity. This means that someone who works as an accountant does not compromise professional or business considerations due to bias, conflict of interest, or influence that should not exist from other parties.

Accountants are also not allowed to hold professional activities if there is a situation or relationship that greatly affects their professional considerations for these activities.

An accountant must carry out his work with high professional ethical standards, especially in terms of competence and professional prudence. This point requires an accountant to:

Accountants must comply with the principle of confidentiality. This means that an accountant is obliged to maintain confidential information obtained from the results of professional and business relationships. Even this confidentiality must be obeyed even after the professional relationship between the accountant and client or organization where he works ends.

When changing jobs or getting a new client, accountants may use previous experiences but may not use or absorb secrets obtained or received previously.

Accountants must comply with professional behavior, which requires these professional actors to comply with applicable laws and avoid other behaviors that could potentially discredit professions.

Accountants are also not allowed to engage in businesses, jobs, or other destructive activities or have the potential to damage the integrity, objectivity, or reputation of the profession, and the results are not in accordance with the basic principles of ethics.

That's the ethics of the accounting profession. Visit VOI.id to get other interesting information.