Professional Ethics In Accounting Research Articles

Navigating Ethics: Insights into External Auditor Compliance from Financial Managers and Internal Auditors in Jordanian Companies

This study aims to assess to what extent Jordanian external auditors comply with the Code of Ethics for Professional Accountants, as perceived by financial managers and internal auditors. The hypotheses are tested using one sample and an independent sample t-test for a sample of 53 industrial public shareholding companies listed on the Amman stock exchange during 2020–2023. The study utilized the survey instruments to collect the necessary data from 200 participants. The findings show that the external auditor complies with the code of professional ethics at a high to moderate level per the Relative Important Index from the viewpoint of both financial managers and internal auditors. Moreover, the outcomes also show there are no significant variances between their beliefs regarding the adherence of external auditors to the code of ethics. The study consequences indicate that the enacted regulations that organize the work of the auditors can effectively enhance the compliance of Jordanian auditors with the code of professional ethics. Nevertheless, it emphasized the need for more shared efforts for more compliance with professional ethics in the auditing profession. The study suggests Many recommendations to enhance auditors’ compliance such as continuous oversight of auditor compliance from the Jordanian Association of Certified Public Accountants, ethical awareness, research and development in the area of ethics, and training programs to explain ethical complexities. This study assures the importance of enhancing ethical compliance in the auditing profession in an emerging country to increase public trust, attract investment, and improve financial statements integrity.

Trouble in paradise? or Ethical Dilemmas in the Accounting Management of A Religious Organization, A Case Study

This case study explores the ethical dilemmas faced by the accounting staff of a religious organization. The object of study is an important religious organization in Peru with national scope and affiliation abroad. The method is qualitative, and the ethical pattern is analyzed through the Nagel-Baud model to identify the reason or motivation of the decisions. Twelve ethical dilemmas faced by the accounting personnel in the organization are obtained. Likewise, it is established that the values of the religious organization are prioritized over the accounting ethics contained in the Peruvian Code of Ethics. Justification is obtained from the point of view of dogma and religious practice by the accounting staff. The research concludes that professional accounting ethics should be emphasized in the conduct of the professional before religious values and recommends that the accounting personnel should be external as well as the obligatory nature of the internal control area.

Analysis of Violations of the Code of Ethics for Professional Accountants in the Business Sector: Case Study of AP and KAP Involvement at PT Asuransi Adisarana Wanaartha (WAL)

The research aims to analyze violations of the professional code of ethics for accountants in the business sector, focusing on the case study of PT Asuransi Adisarana Wanaartha Life (WAL) to obtain a comprehensive review. Hopefully, this study will open new insights into the role of codes of ethics in maintaining the integrity and trust of the public in the accounting profession and the public accounting profession. This research uses a literature review analysis method. The type of data collection used is secondary data in the form of journal articles with index Sinta 2 - 6, Garuda, index Copernicus international (ICI) via the page https://scholar.google.com over five years from 2019 -2023, as well as news and press releases via the website. The data analysis technique is conducted descriptively by analyzing and identifying scientific articles, news, and press releases, generating a more informative summary. The results of the research reveal how important it is for every practitioner to maintain competence and expertise in the field of accounting, adhere firmly to and comply with the code of ethics of the accounting profession in carrying out accounting practices, thus creating a professional and accountable attitude, and avoiding the risk of violating the code of ethics of the accounting profession.

Comparative Analysis of the Code of Ethics of the Accountant Profession in Terms of Religiosity in an Islamic Perspective

This study aims to see, and contain values about ethics according to IAI and AAOFI, analyze accountant professional ethics from the point of view of religiosity, and find the formulation of accounting professional ethics according to Islam. Based on the purpose of this study, it is expected that a substitute for professional accounting ethics is not only by Islamic teachings, but also considered not representative balanced, fair, and honest as required by the accountant’s professional code of ethics. So that universal values, fairness, humanity, and flexibility will make accountant professional ethics acceptable to all groups, Muslims and non-Muslims. So, the professional ethics of Sharia accountants and conventional accountant ethics must be carried out by taking into account aspects of religiosity to prevent cases of violations of accounting ethics to provide benefits for all parties

Pengaruh Pemahaman Kode Etik Akuntan dan Religiusitas terhadap Perilaku Etis Mahasiswa Akuntansi

The problem of professional ethics in accounting has become the center of public attention so that all professions are required to work professionally. This study aims to analyze the effect of understanding the accountant's code of ethics and religiosity on the ethical behavior of accounting students. This research is a causative research using a quantitative approach. The data used in this study is primary data with data collection techniques using questionnaires. The population in this study were students majoring in accounting for the 2018/2019 academic year, Faculty of Economics, Padang State University. The sample technique used in this research is purposive sampling. The number of samples in this study were 146 students from 231 accounting students at Padang State University. The hypothesis in this study was tested using multiple linear regression analysis with IBM SPSS 22. The results of this study (1) understanding of the accountant's code of ethics has a significant positive effect on ethical behavior of accounting students at Padang State University and (2) religiosity has no effect on ethical behavior of university accounting students Padang Country.

Ethics and the Role of Accountants Facing the Current Industrial Revolution

Accountants as a profession are required to keep abreast of developments in an increasingly globalized world. In the current era of the Industrial Revolution, the Indonesian accounting profession must respond to these challenges by strengthening expertise, opening insights both independently and in groups, instilling high values and ethics to contribute in order to withstand pressure and win the competition. Accountants have a code of ethics that regulates professional ethics issued by the Indonesian Institute of Accountants under the name Professional Ethics of Accountants. The code of ethics for the accounting profession is used as a basis for ethical behavior and becomes a guarantee of quality morals in society. The development of the digital economy has changed the role of accountants from book-keeping to internal control and information analysis for management, as well as increasing competition in the field of accounting education. Students are required to understand and follow the code of ethics for the accounting profession as the basis for their future professionalism, which can be learned through professional ethics courses. Understanding the code of ethics will help students behave ethically at work and position themselves as professional accountants. The code of ethics for the accounting profession contains principles and rules that must be obeyed by accountants, such as professional responsibility, integrity, objectivity, competence, confidentiality, professional behavior, and technical standards. This article aims to explain narratively the role of ethical accountants in facing the industrial revolution. Accountants face a number of challenges in carrying out their roles and obligations. It is recommended that all interested parties jointly take a role and help each other to make improvements in upholding professional ethics.

Pengaruh Literasi Akuntansi dan Pemahaman Etika Profesi Akuntansi Terhadap Komitmen Tidak Korupsi dengan Pendidikan Keluarga Sebagai Pemoderasi

This study aims to prove whether there is an effect of accounting literacy and understanding of professional accounting ethics on non-corruption commitments moderated by family education. The research method used is the survey method. The data collection techniques used questionnaires and distributed them to respondents using Google Forms. The research subjects are accounting graduates who work in the Special Capital Region (DKI) Jakarta. The results of the research are accounting literacy and professional ethics of accountants have a significant positive effect on non-corruption commitment, while family education does not affect non-corruption commitment. Furthermore, family education has not been able to moderate the effect of accounting literacy on non-corruption commitments and family education has not been able to moderate the effect of professional accounting ethics on non-corruption commitments.

Compromising your morals: The perils of new beginnings as an auditor

AbstractThis real‐world inspired case describes an ethical dilemma for a recently hired auditor and new Certified Public Accountant (CPA)/Associate Chartered Accountant (ACA) who must choose between cheating on a mandatory firm audit training and exam and suffering the possibility of negatively affecting her advancement with the firm and future compensation. The purpose of this case is to provide students the opportunity to identify an ethical dilemma, apply accounting ethics codes to evaluate potential responses and recommend an ethical course of action. Students completing this case will (1) understand the common pressures and complexities associated with an ethical dilemma; (2) be exposed to the American Institute of Certified Public Accountants' (AICPA Code) Code of Professional Conduct and the International Ethics Standards Board (IESBA Code) International Code of Ethics for Professional Accountants; (3) apply knowledge of the AICPA Ethics Decision Tree to a real‐world inspired ethical dilemma; (4) evaluate and analyse the various courses of action to an ethical dilemma; and (5) demonstrate the impact tone at the top and organizational culture have on employees and the firm. The case was very effective in exposing and enhancing student's overall knowledge 4.28 (σ = 0.57) and application 4.28 (σ = 0.65) of the AICPA Code.

The Influence of the Code of Ethics and Corporate Ethical Values on the Ethical Judgment of Auditors: Evidence from Vietnam

Abstract Accounting fraud and auditing fraud are important areas of research that have both theoretical and practical implications. A strong and sound code of ethics and ethical values are in place in order to prevent these frauds. The study investigates the impact of the code of ethics and audit firms’ corporate ethical values on auditors’ ethical judgment in Vietnam. Based on questionnaires collected from Vietnamese auditors, the results of the study indicate that the code of ethics for professional accountants has a significant influence on the auditors’ ethical judgment. Whereas the finding only shows minor support for the influence of the audit firms’ corporate ethical values on the auditors’ ethical judgment. The study has implications for audit firms and professional bodies in their continuous efforts to promote understanding and compliance with the code of ethics and develop a strong corporate ethical culture in the firms.

ETHICAL SENSITIVITY, PEMAHAMAN KODE ETIK PROFESI AKUNTAN DAN PENGARUHNYA TERHADAP PERILAKU ETIS MAHASISWA AKUNTANSI

Ethics As thought and moral considerations provide the basis for a person as well as a community in performing an action. Compliance with the code of ethics, like all standards in society is not, depends on the understanding or perception of the code of ethics. Ethical sensitivity also has an influence on the individual in making decisions about ethical actions. Data collection was done by using questionnaire. The number of samples in this study were 128 respondents and selected based on Slovin method and corrected by random sampling method. Namely the students of semester 4, 6, and 8 with the criteria of consideration can no longer switch majors and have taken accounting courses. The results of hypothesis testing show that the Ethical Sensitivity and Understanding of the Code of Professional Ethics of Accountants influence the Ethical Behavior of Accounting Students at Bina Bangsa University. Judging from the value of the F Test value F count 18.452> Ftable 3.069, with R square value of 22.8% while the rest of 0.722 percent is determined by other factors

Accountant profession and ethics of its behavior

The article reveals important aspects of the profession of an accountant, the ethical norms of accountant´s behaviour, and the social and moral norms of behavior for individuals in this professional group. The main objectives of business ethics are highlighted, including key components of the professional accounting ethics, which were originally developed in the United States in the form of an ethical code for accountants. The essence of professional ethics for accountants and auditors is defined as a code of relevant rules that determine the behavior of specialists in the workplace, as well as norms that correspond to existing legislative and regulatory acts and official regulatory documents, professional knowledge, relationships in the team, a deep awareness of moral responsibility for performance professional duties. An important place in professional ethics belongs to consideration of the professional responsibility of a specialist in the field of accounting and auditing. The authors note that it is relevant for the domestic market to adhere to foreign practices, where violations of professional ethics, including the code of ethics for professional accountants and auditors, can lead to the revocation of a license to practice within the profession after review by special committees. The priority role in the education of highly qualified specialists and their compliance with ethical rules belongs to the sphere of education, particularly higher educational institutions, advanced training courses, webinars, conferences, etc. Science, education, and practical experience of specialists should create the basis for professional knowledge, skills, values, ethics, and attitudes toward the profession. The article describes the profession of an accountant as one of the most responsible professions, as errors in financial documents can result in significant fines for business owners. Competencies and personal characteristics of accountants in modern conditions and the realities of our lives are also mentioned.

ETHICAL REQUIREMENTS FOR THE ACCOUNTANT PROFESSION

The article deals with issues related directly to the profession of an accountant, which is based on responsibility for acting in the interests of the organization where they carry out their professional activities or in the interests of the client, employer, employees and other persons. It follows that a professional accountant must observe ethical conduct. In his activities, he must comply with certain fundamental principles: decency; professional competence and due diligence; confidentiality; professional behaviour. To do this, we will consider the approaches and requirements for the professional ethics of accountants

Assessing the Safe Behavior of Accountants by Designing an Accountant's Professional Ethics Model

Introduction: Ethics is a pervasive subject which covers all aspects of human life. The rapid growth of human society and the complexity of social relations require the emergence of various professions. Survival of these professions depends on the type and quality of services they provide and the trust and credibility that they gain as a result of providing these services. To increase the impact of professional ethics, it is necessary to have patterns consistent with culture and society, and by recognizing them, the dimensions of safe behavior by accountants can be explored.
 Research Method: This was an applied study in terms of purpose, and based on the research method, it was both quantitative and qualitative. The statistical population consisted of published domestic papers related to accounting professional ethics. In this study, effective criteria based on previous research were identified and selected in the form of 5 main indicators. Then, a researcher-made questionnaire was designed and implemented to determine the fuzzy cognition mapping pattern.
 Findings: Fuzzy cognition mapping among 5 main components showed that there is a cause and effect relationship between all components. However, this cause and effect relationship is positive in some cases and negative in others. Results indicated that an individual component has a negative relationship with an organizational component and a positive relationship with other components. Social component has a positive relationship only with the individual component and a negative relationship with other components. In other words, social component is inversely related to organizational, professionalism and environmental indicators, and the highest intensity of the reverse flow is related to the environmental component.
 Conclusion: By understanding professional ethics of accountants and identifying its basic components and determining the relationship between these components in different dimensions and specifying the importance of each of them, a specific framework or format can be designed and implemented for observing or not observing professional ethics by accountants and the desire to behave based on the code of professional behavior .This is to reduce unsafe behaviors, and as a result, reduce the rate of accidents in the country's industries.

Affective professional commitment and accounting ethics principles: examining the mediating role of the code of ethics

Accounting ethics emerged as a significant socio-economic issue due to the recent frauds that eroded the public trust in financial statements and in accountants who prepare them. Therefore, ethical behaviour in business must be indorsed. This article examines the effect of affective professional commitment of accountants on their perception of importance of accounting ethics principles application with the mediation of the Code of Ethics for Professional Accountants by ISEBA. As in other vocations, some professional accountants have an innate sense of morality but the others should be advised to consult the Code of Ethics. This explains the direct and indirect (with the Code of Ethics as the mediator) relationship between affective professional commitment and the accounting ethics principles application. According to our findings, accountants with higher levels of affective professional commitment are more likely to perceive the importance of accounting ethics principles. Application of the five fundamental accounting ethics principles (integrity, objectivity, professional competence and due care, confidentiality and professional behaviour) should be promoted while consulting the Code of Ethics should be supported in order to decrease unethical behaviour of the professional accountants.

PROFESSIONAL ETHICS OF ACCOUNTANT, AUDITOR AND TAXPAYER AS A FACTOR OF FORMING PUBLIC OPINION

The article describes the features of professional ethics of accountants, auditors and tax officers as an importantcondition for achieving the better productivity. The essence of the concept of professional ethics is stated. Professionalethics is a code of rules that determine the behavior of a specialist in the performance of professional duties andguarantee compliance with moral norms within the current legislation. The basic principles of ethics of professionalaccountants are clarified. The algorithm of identification and assessment of threats to the observance of basic principlesand application of precautionary measures is determined. It is established that the observance of professional ethics byan accountant, auditor and tax officer is one of the most important factors of clients' trust in the results of their work.

Independent Financial Audit of the Financial Statements of Pension Funds Under the Conditions of Digitalization

The main task of the Certified public accountants, registered auditors in the conditions of the global health crisis, caused by the declared pandemic by COVID 19 is to carry out an independent financial audit of the financial statements of pension funds in digital conditions so as to preserve the main purpose and tasks of audit. To express adequately their audit opinion and to protect themselves against frauds, deviations and bad audit practices in digital conditions by using new approaches, procedures, methods, rules and auditing standards that do not violate the introduced quality standards by International Standards on Auditing (IAS) and the International Code of Ethics for Professional Accountants. As a result of globalization, the new international regime for regulating pension activity and the changed national requirements of state insurance supervision, in the context of the global health crisis there is a need for registered auditors to develop a new, digitalized methods, as well as a new methodology for conducting independent financial audit of the financial statements of the pension funds.

Considerations on the Improvement of Ethical Decision Making in the Accounting Profession

Ethical-decision making is an overly complex process. Despite the enormous number of studies assessing it in various fields of research, much is still unknown. This paper provides an overview regarding the paths that can be used to enhance ethical decision-making process in a period when ethical challenges are set to intensity (according to the Ethics board’s COVID-19 Working Group and national ethical standard-setters from various countries working under the International Ethics Standards Board for Accountants). In this respect, we consider that although the International Code of Ethics for Professional Accountants is a good path for improvement, this is not enough when guiding professional accountants. Moreover, a constant effort for combining standard-setters’ provisions with prominent ethical decisionmaking models tested in the literature and innovative ethics pedagogies will result in improving ethical decision-making quality in the long run. Future research avenues are also approached.

ОЦІНЮВАННЯ ЗАГРОЗ ПРОФЕСІЙНІЙ ЕТИЦІ В ПРАКТИЧНІЙ ДІЯЛЬНОСТІ БУХГАЛТЕРІВ

The article is devoted to the study of issues of identification and determination of the level of threats to the professional ethics of professional accountants. Based on the study of the International Code of Ethics for Professional Accountants (including the International Standards of Independence), a description of the threats to compliance with the fundamental principles of ethics of professional accountants, which are divided into five types: threats to self-interest, self-assessment, protection, personal interests and pressure. We have systematized the circumstances that cause these threats, the diversity of which is related to the following situations: preparation and submission of information; offer to provide or receive incentives; the presence of financial interest of a professional accountant in the organization-employer; pressure from managers, management of the employer organization on non-compliance with applicable law and in the event of a conflict of interest. As a result of our research, we proved the nonlinearity of the relationship between circumstances, threats and ethical principles of professional accountants: one circumstance can create several threats, while one threat can affect compliance with several fundamental principles. For example, requiring management to prepare and provide misleading information poses a threat to self-assessment, pressure, and self-interest. At the same time, these circumstances pose a threat of non-compliance with the fundamental principle of objectivity. According to the Conceptual Basis of the Code, a professional accountant must not just follow specific rules, but identify, evaluate and eliminate threats of violation of fundamental principles of ethics. The study of the sequence of actions of the accountant and detailing the factors that should be taken into account, allowed us to visualize the decision-making procedure of the accountant in identifying threats to his ethical behavior and present it as an algorithm. We have proposed a method of differentiated quantitative assessment of acceptable levels of threats, which allows to take into account the probability of their negative impact on compliance with the principles of ethical behavior and the significance of threats for a professional accountant. The use of the provided proposals in practice will promote a more conscious attitude of accountants to the fundamental principles of ethics, will monitor the circumstances that pose a threat to their ethical behavior and will allow more efficient performance of professional tasks.

New challenges of the IFAC International Code of Ethics. The case of the Republic of North Macedonia

Purpose: The main purpose of the paper is to provide empirical evidence on certified auditors’ perceptions in the Republic of North Macedonia (RNM) about the new IFAC International Code of Ethics for Professional Accountants. Methodology/approach: A survey was conducted by distributing a questionnaire to the certified auditors in RNM, and the answers were then analyzed. Findings: The results indicate that the observance of the Code of Ethics affects the quality of audit engagements in domestic practice. The majority of practitioners believe that the fundamental principles are sufficiently clearly elaborated and can provide an appropriate basis for ethical conduct. The principle of objectivity is most exposed to threats, while the most common threat is familiarity. Safeguards created by the profession, the law, and regulations are more effective in addressing threats. Finally, practitioners agree that the innovations brought by the new Code of Ethics represent a significant benefit to the auditors’ mission to preserve and strengthen their independence. Research implications/limitations: The research provides empirical evidence of ethical behavior in domestic audit practice, but no similar research has been done before to make a comparative analysis. Originality/value: This research is the first of this type in RNM and fills the research gap in the field of ethical behavior in the domestic audit practice.

Analyzing the most effective indicators of accountant professional ethics: the inevitable necessity for assessing the safe behavior of accountants

Introduction: Morality is very important in human life because human humanity is formed when moral values are crystallized in him. Every human being is evaluated to the extent of the emergence of moral values in thoughts, speech, and behavior, the first manifestation of a person in society is that person's morality. To increase the impact of professional ethics, it is necessary to have patterns that are consistent with culture and society, and by recognizing them, the dimensions of safe behavior by accountants can be explored.
 Materials and Methods: This research is based on a combined method. Because in this research, both quantitative and qualitative approaches have been used in data collection and analysis, a combination of findings and conclusions. In the present study, data collection has been done through library and field research methods. Statistics consists of theoretical texts related to accounting professional ethics. In this study, using a researcher-made questionnaire, effective criteria based on previous research were identified and finally, 25 sub-components in the form of 5 indicators were identified as the most important factors of professional ethics. In this study, NVIVO software (in the content analysis section) Used.
 Results: According to experts, the components of professionalism and organization are more important than other criteria and affect the sustainable development of safe behavior and professional ethics of the accountant.
 Conclusion: By understanding the professional ethics of accountants and identifying its basic components in different dimensions and determining the importance of each of them, a specific framework or format for accountants to observe or not to observe professional ethics and the desire to act based on Design and implement a code of professional conduct to reduce unsafe behaviors and, as a result, reduce the incidence of accidents in the country's industries.