Abstract
<p>This research aims to improve public confidence in the credibility of accountants. The involvement of professional accountants in some cases financial reporting proved to be detrimental to the public at large and potentially reduce the credibility of accountants. To prevent the recurrence of similar cases in the future, then the preventive efforts should be made early on that in college because of accounting students are candidates for professional accountants in the future. Accounting colleges need to improve the structure of the curriculum by providing more servings to the problem of moral ethics.</p><p>The study was conducted on two groups of respondents, academics (students and professors of accounting), as well as practitioners (public accountants and management accountants) in East Java. Data is primary, obtained through questionnaires, analyzed using a technique independent sample T-test and Regression Analysis.</p>The study concluded that academics perceive the credibility of accountants better than the practitioners. In deciding the accounting policies, academics more moral scenarios taking into account the magnitude of the consequences and social consensus. Meanwhile, practitioners tend to take advantage of the flexibility of financial reporting as a loophole to gain managerial. Understanding of the professional code of ethics is creative accounting practices and good corporate governance principles proven to affect the credibility of the accountant.
Highlights
As an engineering science, Accounting provides an opportunity and innovation for the company to make a choice from a variety of alternative methods of financial reporting, so that there is a gap to interpret accounting standards
There who think that earnings management is likely to mislead stakeholders, but on the other hand is considered as a reasonable measure of flexibility in the use of financial reporting rules
This study aims to understand the differences in the perception of academics and practitioners to the credibility of accountants
Summary
As an engineering science (engineering), Accounting provides an opportunity and innovation for the company to make a choice from a variety of alternative methods of financial reporting, so that there is a gap to interpret accounting standards. Wilopo (2006) states that the effectiveness of internal control, compliance compensation, information asymmetry, and morality positive influence on the management of unethical behavior accountant. Accounting ethics field researchers found evidence of fraud in financial reporting always involves accountants, both management and auditors accountants. The involvement of management in financial reporting or profit management is often the cause of action of creative accounting in which several parties are jointly using the ability of understanding the knowledge of accounting (including standards, techniques, and procedures) to manipulate financial reporting (Amat, Blake, & Dowd, 1999). Ethical quandary to earnings management practices is often used less moral accountant to legalize such action. There who think that earnings management is likely to mislead stakeholders, but on the other hand is considered as a reasonable measure of flexibility in the use of financial reporting rules
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
