Ethical attitudes can affect the financial result of the company. Burton and Goldsby 2009, p. 145 stated that ethical or unethical behavior leads to positive
or negative financial results.
C. The Indonesian Institute of Accountants IAI Code of Ethics
In exercising his profession, an accountant governed by a code of ethics accountant. Accountants’ code of ethics Indonesia ties is the norm governing the
behavior of the relationship between the accountants with their clients, the accountant with colleagues and the profession with the community.
The existence of a code of ethics stated explicitly several behavioral criteria that must be adhered to by the accounting practitioners. Ethics in the
accounting practitioners regulated by Indonesian Institute of Accountants IAI Code of Ethics, the Code is binding on the members of the IAI on one side and
can be used by other accountants who are not yet a member IAI on the other side.
General code consists of 8 principles of professional ethics, which is the foundation of professional ethical behavior, providing the basic framework for the
rules of ethics, and set implementation of the provision of professional services by members, which include:
a. Principles of professional responsibility
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In carrying out his responsibilities as professionals, each member must always use moral considerations and professionals in all the
activities done.
b. Principle of public interest
Each member is obligated to always act within the service framework to the public, honor the public trust, and demonstrate
commitment to professionalism.
c. Principle of integrity
To maintain and enhance public trust, each member must fulfill his professional responsibilities with integrity as high as possible.
d. Principle of objectivity
Each member should maintain objectivity and be free from conflict of interest in fulfilling his professional obligations.
e. Principle of competence and professional caution
Each member must perform his professional services with care, competence and diligence, and has an obligation to maintain
professional knowledge and skills at the necessary level to ensure that
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the client or employer get benefit from a competent professional service based on the development of practices, legislation and the most
recent techniques.
f. Principle of confidentiality
Each member have to respect the confidentiality of the information acquired during the conduct of professional services and should not be
used or disclose such information without consent, unless there is a right or professional or legal obligation to reveal it.
g. Principle of professional behavior
Each member must behave consistent with the reputation of the good profession and avoid actions that could discredit the profession.
h. Principles of technical standards
Each member must perform his professional services in accordance with technical standards and relevant professional standards. In
accordance with the expertise and carefully, members have an obligation to carry out assignments from the service recipient during
the assignment is in line with the principles of integrity and objectivity.
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Comparison of Sections at the Draft of Code of Ethics and Code of conduct Current Applicable
Table 2.1 Basic principle of IAPI code of ethics
Section Draft of Code of Ethics
Section Current code of ethics
100 Part A: Basic Principle
Part I: Basic Principle
110 Integrity Integrity
120 Objectivity Objectivity
130 Competence, Accuracy
and Professional Caution Competence
and Professional Caution
140 Confidentiality Confidentiality
150 Professional Behavior Professional
Behavior Professional
Responsibility Public
Interest Professional
Standard
Table 2.2 Ethics Rules
Section Draft Code of Ethics Section Current Code of Ethics
Part B : Ethic Rules Part II : Ethic Rules
200 Threats and Prevention
100 Independency, Integrity
and Objectivity 210 Practitioners
Appointment, Public Accounting Firm,
and Public Accounting Network
200 General Standard and
Accounting Principles
220 Conflict of Interest
300 Responsibility
to the
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client 230
Second Opinions 400
Responsibility to the colleagues
240 Professional Fees
and Other Forms of
Remuneration 500
Responsibility and other practical
250 Marketing Professional
Services
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Section Draft Code of Ethics Section Current Code of Ethics
260 Acceptance of Gifts or
Hospitality Form Other
D. TH
