The Code of Professional Ethics and Good Governance on the Quality of Company Financial Statements

Abstract

The problems that will be examined in this study relate to empirical hypothesis testing how the influence of understanding professional ethics and the application of good governance principles on the quality of the company's financial statements presentation. The research sample is accountants who work in public accounting firms in Bekasi, West Java and East Jakarta with a total sample of 100 respondents. The sampling method used purposive sampling in accordance with the expected objectives of this study. The research approach is quantitative research with the type of correlational research. The results of the study reveal that (1) Understanding of Professional Ethics has a positive effect on the quality of the presentation of the company's financial statements. This means that the better the understanding of accountants about their professional ethics, the better their awareness and commitment to carrying out their professional ethics specifically in their duties and responsibilities in the preparation of quality financial reports. (2) The application of Good Governance has a positive effect on the quality of the presentation of the company's financial statements. This means that a good understanding and commitment to the application of the principles of transparency, accountability, participation and responsiveness will motivate the commitment of accountants in the presentation and preparation of quality corporate financial reports.