3.
Principle of ethics accounting profession
A. The
American Institute of Certified Public Accountants (AICPA) is a professional
organization responsible for developing professional accounting ethical values.
a. Integrity
Integrity is an important fundamental
element of the accounting profession. Integrity requires accountants to be
honest, candid and forthright with a client's financial information.
Accountants should restrict themselves from personal gain or advantage using
confidential information. While errors or differences in opinion regarding the
applicability of accounting laws do exist, professional accountants should
avoid the intentional opportunity to deceive and manipulate financial
information.
Public accounting firms or private
companies often develop a code of ethics or conduct for accountants. These
ethics and conduct rules ensure all accountants act in a consistent manner. In
the absence of specific rules or standards, accountants should review their
actions to ensure they are following commonly accepted principles.
b.
Objectivity and Independence
Objectivity and
independence are important ethical values in the accounting profession.
Accountants must remain free from conflicts of interest and other questionable
business relationships when conducting accounting services. Failure to remain
objective and independent may hamper an accountant’s ability to
provide an honest opinion about a company’s financial information.
Objectivity and independence are also important ethical values for auditors.
The accounting industry
usually limits the number of services public accounting firms or individual
certified public accountants (CPA) can offer clients. Accounting services
include general accounting, auditing, tax and management advisory services.
Accountants who perform more than one of these services for a client may
compromise their objectivity and independence. For example, individuals who
handle general accounting functions and then audit this information are
essentially reviewing their own work. This situation may allow an accountant to
hide a company’s negative financial information.
c.
Due Care
Due care is the ethical
value requiring accountants to observe all technical or ethical accounting
standards. Professional accountants are often required to review generally
accepted accounting principles (GAAP) and apply this framework to a
company’s specific financial information. Due care requires
accountants to exercise competence, diligence and a proper understanding of
financial information. Competence is usually based on individual’s
education and experience. Thus, due care may require senior accountants to
supervise and direct other accountants with less experience in the accounting
profession.
B.
IFAC (International
Federation of Accountants) principle
A professional accountant shall comply with the following
fundamental principles:
a.
Integrity – to be straightforward and honest in
all professional and business
relationships.
b.
Objectivity – to not allow bias, conflict of interest or undue
influence of
others to override professional or business judgments.
c.
Professional Competence and Due Care – to maintain professional
knowledge and skill at the level required to ensure that a
client or employer
receives competent professional service based on current
developments in
practice, legislation and techniques and act diligently and
in accordance
with applicable technical and professional standards.
d.
Confidentiality – to respect the confidentiality of
information acquired as a
result of professional and business relationships and,
therefore, not disclose
any such information to third parties without proper and
specific authority,
unless there is a legal or professional right or duty to
disclose, nor use the
information for the personal advantage of the professional
accountant or
third parties.
e.
Professional Behavior – to comply with relevant laws and regulations and
avoid any action that discredits the profession.
C. IAI (Ikatan Akuntansi Indonesia) principle
a. Profession Responsibility, that the accountant
in carrying out his responsibilities as a professional must always use moral
and professional judgment in all activities he undertakes.
b. Public Interest, accountants as members of the
IAI are obliged to always act within the framework of public service, respect
for the public interest, and demonstrate a commitment to professionalism.
c. Integrity, accountant as a professional, in
maintaining and increasing public trust, must fulfill its professional
responsibilities by maintaining its integrity as high as possible.
d. Objectivity, in fulfillment of its
professional obligations, any accountant as an IAI member shall maintain
objectivity and be free from conflict of interest.
e. Competence and Prudence Professionals,
accountants are required to perform their professional services with caution,
competence, and perseverance to maintain their professional knowledge and skills
at the required level.
f.
Confidentiality,
the accountant must respect the confidentiality of information obtained during
professional service and may not use or disclose such information without
consent, unless there is a professional or legal right or obligation to
disclose it.
g. Professional Behavior, an accountant as a
professional is required to behave consistently in harmony with the reputation
of a good profession and stay away from actions that can discredit his
profession.
h. Technical Standards, accountants in performing
their professional duties must refer to and adhere to relevant technical
standards and professional standards.
4.
What Does Components of
Accounting Systems Mean?
You can think of the accounting system in terms of how it
relates to the accounting cycle. Each section of the system is
designed to accomplish one or two steps in the cycle ultimately culminating in
the preparation and issuance of financial statements.
Example
There
are five main components in an accounting system. Each part has a different job and
accomplishes different step in the financial reporting process. The five
components are source documents, input devices, information processors,
information storage, and output devices.
Source
documents are business documents that track business transactions. These
documents are created as a written record of a deal being made or a transaction
taking place. Documents like invoices, purchase orders, and receipts are
created at the end of a business event to keep a record of the original
transaction.
a. Input devices, like bar code scanners, keyboards, and
modems, are tools used to enter transaction information into the accounting
system. These devices help employees enter source documents into the system.
b. Information processors take the raw data from the input devices
and post it to ledgers, journals, and reports. Processors, like computers and
software programs, process the data, so decision makers can use it.
c. Information storage is the component of the system that
stores the reports and ledgers created by the information processors. Most
modern accounting systems are computer based, so the storage devices usually
consist of servers and hard drives. However, file cabinets are still considered
storage devices.
d. Output devices like monitors, printers, and projectors
are any devices that take information from the system storage and display it in
a useful way, so that it can be used.
Sumber :
5.
Handbook of the Code of Ethics for Professional Accountants 2016
Edition
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