CODE OF ETHICS FOR ACCOUNTANT

(In order to accomplish Professional Ethics for Accountants assignment)

Group 7 :
Jaka Maulana

8335120524

Nida Annissa

8335123519

Puji Astuti

8335123550

S1 Accounting Reguler B 2012

FACULTY OF ECONOMICS
STATE UNIVERSITY OF JAKARTA
2015

PREFACE

Praise be to Allah, the cherisher and sustainer of the worlds, God who has
been giving His blessing and mercy to the authors to complete the paper entitled
CODE OF ETHICS FOR ACCOUNTANT.
In finishing this paper, the authors really give their regards and thanks for
people who has given guidance and help, they are :
1. Mrs. Marsellisa Nindito, as the Professional Ethics for Accountant lecturer,
who has given her best guidance to writes a report.
2. Our friends and our parents, who always give their supports.
Finally, the authors realize there are unintended errors in writing this
report. The authors really allow all readers to give their suggestion to improve its
content in order to be made as one of good examples for the next paper.
Hopefully, this paper can be usefull for readers and expanding horizons. Thank
you.

Jakarta, 9th April 2015

Authors

CONTENT

PREFACE................................................................................................................i
CONTENT..............................................................................................................ii
CHAPTER I INTRODUCTION...........................................................................1
CHAPTER II DISCUSSION.................................................................................3
2.1.

INSTITUT AKUNTAN INDONESIA (IAI)......................................3

2.1.1.

History of IAI.....................................................................................3

2.1.2.

Congress and The Previous Chairman of IAI....................................4

2.1.3.

Membership.......................................................................................7

2.2. THE STRUCTURE INDONESIAN INSTITUTE OF ACCOUNTANTS

ETHICS................................................................................................ 8
2.3.

ETHICAL PRINCIPLES OF IAI...................................................10

2.4. CODE OF ETHICS FOR ACCOUNTANTS: INTERNATIONAL

FEDERATION OF ACCOUNTANTS (IFAC)...........................................17
2.5.

STRUCTURE AND FRAMEWORK OF THE IFAC CODE OF ETHICS

17

2.6.

FUNDAMENTAL PRINCIPLES..................................................20

2.7. RELATION OF ETHICAL PRINCIPLES IAI AND THE PRINCIPLES

OF ETHICS IFAC................................................................................ 22
CHAPTER III VIOLATIONS OF THE CODE OF ETHICS........................24
3.1.

THE CASE................................................................................ 24

3.2.

CASE ANALYSIS......................................................................27

CHAPTER IV CONCLUSION...........................................................................32
BIBLIOGRAPHY.................................................................................................iii

ii

CHAPTER I
INTRODUCTION

This time which can be referred to as accountants are those who have
graduated from Stratum 1 (S1) of accounting courses and has earned accounting
profession through education accounting profession held by some universities that
have received permission from the Departemen Pendidikan Nasional on the
recommendation of the organization Indonesian Institute of Accountants
profession.
Until now, there have been at least three classes of work that can be
cultivated by an accountant, as a management accountant, internal auditor, and
public accountant. There are still mistakenly understood that the accounting
function is only needed by the organization-oriented company profit achievement.
Whereas, government organizations and non-profit oriented organizations also
require accounting functions, as important as accounting function in company
organization. In the organizational structure of the Republic of Indonesia, there
are a high state institutions, government agencies, departments, and units of work
under the department. All of these institutions require accounting functions
assigned to record and create financial reports, at least as an accountability tool.
The whole accountants in Indonesia shelter in a professional organization
called the Indonesian Institute of Accountants (IAI). In compliance with
increasing specialization areas can be cultivated by the accountant, it also formed
sub-professional organizations such as Indonesian Institute of Public Accountants,
Indonesian Institute of Management Accountant, Indonesian Institute of Public
Sector Accountants, and Indonesian Institute of Education Accountants.
The work of the accountant can be called a profession because: (1) require
knowledge of accounting and / or other relevant of disciplines (2) require skills in
data processing and presenting the financial statements and (3) must have the
attitude and ethical behavior (attitude).
Currently accounting profession in Indonesia is following competency
standard that used in US. However, the tendency of the system to the
1

incorporation of the world economy, the entire accounting profession in the world,
have to support the direction of the unification of the global economic system.
Realizing this, the officers and members of IAI have discussed about
readiness of IAI to adopt technical standards and international code of ethics by
utilizing a variety of forums, such as congresses, seminars, workshops, training
and e.t.c. The latest news, IAI officials determined as soon as possible the
accounting profession in Indonesia to adopt the technical standards and conduct
was issued by the International Federation of Accountants (IFAC).

CHAPTER II
DISCUSSION

2.1.

INSTITUT AKUNTAN INDONESIA (IAI)

2.1.1. History of IAI

At the time of Indonesia's independence, there is only one accountant
native whose name Prof. Dr Abutari, meanwhile Prof. Soemardjo graduate
accountant education in the Netherlands in 1956.
The first graduate accountants in Indonesia's are Basuki Siddharta,
Hendra Darmawan, Tan Tong Djoe, and Go Tie Siem, they pass the mid1957's. Together with Prof. Soemardjo, they are took the initiative of
establishing associations accounting for the Indonesian nation. The reason,
they may not be members of NIVA (Netherlands Institute Van
Accountants) or Vaga (Vereniging Academisch Gevormde Accountants).
They realize Indonesia and argued that the two institutions may not be
thinking about the development and coaching Indonesias accountant.
On Thursday, October 17th, 1957, they had held a meeting in the
auditorium of the University of Indonesia (UI) and agreed to establish an
association of accountants Indonesia. Because the meeting was not
attended by all accountants, so they decided to form the Preparatory
Committee for the Establishment of Accountants Association of Indonesia.
The committee was asked to contact the other accountants to ask their
opinion. In the Committee, Prof. Soemardjo as chairman, Go Tie Siem as a
writer, Basuki Siddharta as treasurer while Hendra Darmawan and Tan
Tong Djoe as commissioner. The letters were sent by committee said that
the other 6 accountant was agreed as the reply.
Associations were finally named Indonesian Institute of Accountants
(IAI) finally established on December 23, 1957, which is the third meeting
held in the auditorium of the UI at 19.30.

Chairman

: Prof. Dr. Soemardjo Tjitrosidojo

The first board of management consists of:

Chairman
Registrar
Treasurer
Commissioner

: Prof. Dr. Soemardjo Tjitrosidojo

: Drs. Mr. Go Tie Siem
: Drs. Sie Bing Tat (Basuki Siddharta)
: - Dr. Tan Tong Djoe
- Drs. Oey Kwie Tek (Hendra Darmawan)

The Sixth other accountant as the founder of the IAI is:

1. Prof. Dr. Abutari
2. Tio Po Tjiang
3. Tan Eng Oen
4. Tang Siu Tjhan
5. Liem Kwie Liang
6. The Tik Him
The concept of the first Statutes IAI completed on May 15, 1958 and
the final draft was completed on October 19, 1958. Menteri Kehakiman
ratified on 11 February 1959. However, the date of establishment of the
IAI is set at 23 December 1957. At that time, the goal of IAI is:
1.

Guiding the development of accounting and enhance the quality of

accounting education.

2.

Enhancing the quality of work accountant.

2.1.2. Congress and The Previous Chairman of IAI

Kongres

Tahun/Tempat

Ketua
Prof. Dr.

Tema

1957-1963
I-IV

Soemardjo

Tjitrosidojo
Radius Prawiro

1963-1986

V-VI

1986-1994

VII

1994-1998

VIII

1998 di Jakarta

KNA

dan

KLB

2000 di Jakarta

2002 di Jakarta

KLB

2003 di Bandung

2006 di Jakarta

KLB

2007 di Jakarta

XI

2010 di Jakarta

KLB

Soedarjono
Introspeksi dan Transformasi ProfesiZaenal Soedjais
Akuntan Memasuki Milenium Baru.
Pradigma Baru profesi AkuntanMemasuki Milenium Ketiga: Good
Governance
Pemantapan

IX

KNA

Subekti Ismaun

dan

2012 di Yogyakarta

Akuntan

ProfesionalismeAhmadi Hadibroto
dalam

Perubahan

Lingkungan Global
Peran Profesi Akuntan MeresponsKebutuhan Peningkatan Transparasi
Towards a Greater Transparency andAhmadi Hadibroto
Accountability
Peran Akuntan Dalam MeningkatkanDaya Saing Bangsa
Peran Akuntan dalam meningkatkanMardiasmo
nilai tambah bagi perekonomian
nasional dan global
Transformasi Good Governance dariKepatuhan Menuju Budaya

IAI intends to raise the potential of Indonesian Accountants to be

activator of national development in realizing a fair and prosperous society
based on Pancasila and UUD 1945. IAI aims to develop and leverage
potentialof Indonesias accountant to form a copyright to devotion for the
benefit of the nation and the State. IAI serves as a communication medium
that bridge the various background tasks and dedication to the field of
cooperation that is synergy in harmony, balance and harmony.
To achieve the goals, objectives, and functions, IAI perform a variety
of activities including registration and membership services; development
and preparation of financial accounting standards; development and
5

enforcement of codes of conduct accountant; consultancy for the

development of small and medium enterprises and cooperatives;
publications; international relations; become the center of knowledge and
the development of accounting; maintain and improve the competence of
accountants through education and training; perform certification in
accounting as a benchmark quality standards of professionalism; and
maintain the confidence of service users and the wider community on the
work of professional accountants who are members of IAI.
Statutes and Bylaws (AD ART) IAI has been amended several times,
most recently assigned to the ART AD Extraordinary Congress (KLB) IAI
dated June 27, 2012 as Keputusan Sidang Pleno Tetap KLB IAI Tahun
2012 Nomor: 05/Kongres Luar Biasa/IAI/VI/2012.
Currently IAI is the only container that represents the Indonesian
accounting profession as a whole. IAI is a member of the International
Federation

of Accountants,

accountant's

professional

organization

representing over 2.5 million accountants who take shelter in the 167
associations spread accounting profession in 127 countries. As a member
of IFAC, IAI has committed to implement all international standards for
high quality and strengthening the accounting profession in Indonesia. IAI
is a member and also a founder of the ASEAN Federation of Accountants
(AFA). This time IAI become permanent secretariat AFA.
2.1.3. Membership
At first IAI membership is geared to individuals who choose the
appropriate compartment members working field. IAI members joined in 4
(four) Compartment IAI formed at that time, namely IAI Compartment
Public Accountants (IAI KAP), IAI Compartment Educators Accountants
(IAI Regional Library of Aceh), IAI Compartment Management
Accountants (IAI KAM), and the Public Sector Accounting Compartment
IAI ( IAI KASP).

On May 23, 2007 IAI implement Kongres Luar Biasa (KLB) which
decides IAI is an organization profession which consisting Individuals and
associations.
IAI KAP changing the format to become independent public
accountants association with the name of Indonesian Institute of Certified
Public Accountants (IAPI) on 24 May 2007. IAI KAP was dissolved in
accordance

DPN

IAI

on

June

4,

2007

Nomor

Kep-

22/SK/DPN/IAI/V/2007. Furthermore IAPI at the same time confirmed as

a member of the association IAI in accordance DPN IAI on June 4, 2007
nomor Kep-23/SK/DPN/IAI/V/2007.
IAI KAM also changes the format into an independent association
with the name of the Institute of Management Accountants Indonesia
(IAMI). On September 1, 2009 IAI KAM dissolved, and IAMI set to
become an associate member of IAI according decree IAI DPN nomor
Kep-72/SK/DPN/IAI/IX/2009.
At the time of the XI Congress of the IAI held December 10, 2012,
DPN IAI period 2010-2014 was given the mandate to review the proposed
changes to the membership of IAI and the authority to determine the next
action.
IAI's Kongres Luar Biasa held on June 27, 2012 with the decision of
the IAI is a professional organization whose members are individuals,
consisting of the Main Members, Associate Members, and Young
Members.
2.2.

THE
STRUCTURE
INDONESIAN
ACCOUNTANTS ETHICS

INSTITUTE

OF

The purpose of the accounting profession is to fulfill the

responsibilities with the highest professional standards and achieve the
highest level of performance with an orientation to the public interest. To

achieve these objectives, there are four basic requirements that must be
met, namely:
1) Credibility. Society needs the credibility of information and information
systems.
2) Professionalism. Required individuals that can clearly be identified by
users the accountant service, as professionals in the field of accounting.
3) Quality of Service. The presence of the belief that all services obtained
from the accountant is given by the highest performance standards.
4) Trust. Accountant service users should be able to feel confident that
there is a framework of professional ethics that underpin the provision
of services by accountants.
The code of ethics is a system of norms, values and professional rule
written explicitly stating what is right and good, and what is not true and is
not good for the professionals. Code of Conduct states what actions are
right or wrong, what actions should be done and what should be avoided.
The purpose of professional codes of ethics is providing the best possible
services to users or customers. The existence of a code of conduct will
protect unprofessional conduct.
The structure of the code of conduct IAI consists of four sections
which are based on hierarchy, namely:
1) Principles of Ethics
Principles of the Code of Professional Ethics IAI stated profession
recognition of their responsibilities to the public, service user
accountant, and colleagues. This principle guides the members to fulfill
their professional responsibilities and the basic foundation of ethical
behavior and professional conduct. This principle asks for a
commitment to behave honorably, even with sacrifice personal gain.
2) Rules of Ethics
Ethics rules further elaboration of the principles of ethics and set
for each compartment. For public sector accountants, ethical rules set
8

by the Public Sector Accounting Compartment IAI (IAI-KASP). Until

now, these rules of ethics still in the form of the exposure draft, the
formulation refers to the Standard of Professional Practice on Ethics
issued by the International Federation of Accountants (IFAC).
3) Interpretation of Rules of Ethics
Interpretation the Rules of Ethics is an interpretation issued by a
corporation which established by the Association after considering
feedback from members, and other interested parties, as a guide in the
application of the Code of Ethics, without intended to limit the scope
and application. Currently, Statement of Professional Ethics can be used
as a rule of interpretation and Ethics or until the issuance of a new
interpretation of the rules and replace it.
Compliance with the Code of Conduct, as well as all the standards
in an open society, depends primarily on understanding and voluntary
actions of members. In addition, compliance members also determined
by coercion by fellow members and by public opinion, and in the end
by the processing mechanism Code violations by the organization, if
necessary, against members who do not stick to it.
4) Q & Ethics
At the lowest level, there may be a question and answer related to
ethical issues. This exchange can be done by the Board of Professional
Standards established by the board compartment / institute concerned.

2.3.

ETHICAL PRINCIPLES OF IAI

There are eight Principles of Ethics which has determined its provisions:
1. Responsibility Profession
In principle responsibilities as professionals, each member is
obliged to use moral and professional judgment in conducting its
activities. As professionals, members have an important role in
9

society. In compliance with these roles, the members have a

responsibility to all users of their professional services. Members also
must always be responsible for working with fellow members of the
accounting profession to develop, maintain public confidence, and
execute responsibilities in regulating the profession itself. Collective
effort of all members is required to maintain and enhance the
professional tradition.
2.

Public Interest
Each member is obliged to always act within the framework of
public services, honor the public trust, and demonstrate commitment
to the professionalism.
a. One main characteristic of a profession is acceptance of
responsibility to the public. Profession accountants play an
important role in the community, where the public from accounting
profession which consists of clients, creditors, government,
employers, employees, investors, business and finance, and others
rely on the objectivity and integrity of accountants in maintaining
the function of the business orderly manner. This dependence
causes the attitudes and behavior accountants in providing services
affect the economic well-being of society and the state.
b. Accounting profession can remain in an important position by
continuing to deliver services at a level that indicates that public
confidence which held firm. The main interest of the accounting
profession is to make users understand that accounting services
performed at the highest achievement levels and in accordance
with ethical requirements necessary to achieve the level of
achievement.
c. In fulfilling their professional responsibilities, members may face
conflicting pressures with the interested parties. In overcoming this
collision, a member must act with integrity, with a belief that if the
10

member meets its obligations to the public, then the interests of

service recipients served as best as possible.
d. Those who receive services from members expect the members to
fulfill their responsibilities with integrity, objectivity, professional
thoroughness, and to serve the public interest.
e. All members bind themselves to respect the public trust. The trust
given to her public, members must continually demonstrate their
dedicated to achieve a high level of professionalism.
f. The responsibility of an accountant is not solely to meet the needs
of the individual client or employer. In performing the duties, the
accountant should follow professional standards that focused on
the public interest.
3. Integrity
Integrity is a unity that underlies the emergence of professional
recognition. Integrity is the underlying quality of the public trust and
standard for testing the members in all decision. To maintain and
enhance public confidence, each member must maintain a level of
integrity to continue with maximize the performance and to comply
what has become his responsibility.
a.

integrity is a character element that underlies the emergence of

professional recognition. Integrity is the underlying quality of the
public trust and a benchmark (benchmark) for members to test all
of its decision.

b.

Integrity requires a member to, among other things, being honest

and forthright without compromising confidential service
recipients. Services and public trust should not be defeated by
personal gain. Integrity can receive unintentional mistakes and
honest differences of opinion, but can not accept the principle of
cheating or negation.

11

c.

Integrity is measured in the form of what is right and fair. In the

absence of rules, standards, specific guidelines or in the face of
contrary opinion, members should examine the decisions or
actions by asking whether the member has done what an integrity
will do and whether members have been keeping her integrity.
Integrity requires members to adhere to both the form and spirit
of technical and ethical standards.

d.

Integrity also requires members to follow the principles of

objectivity and professional prudence.

4. Objectivity
Each member should maintain objectivity and free from
conflicts of interest in fulfilling their professional obligations.
1. Objectivity is a quality that gives the value of the services
rendered by members of what has been giving value get. The
principle of objectivity requires that members be fair, impartial,
honest, intellectually, not prejudiced or biased, and free of
conflicts of interest or be under the influence of others.
2. Members work in many different capacities and should
demonstrate their objectivity in various situations. Members in
public

practice

providing

attestation

services,

tax,

and

management consulting. Other members prepare the financial

statements as a subordinate, perform internal audit services and
worked in finance and management capacity in industry, education
and government. They also educate and train those who want to
enter into the profession. Whatever service or capacity, members
must protect the integrity of the work and maintain objectivity.
3. In the face of situations and practices that are specifically related
to ethics rules with respect to objectivity, sufficient consideration
should be given to the following factors:

12

a.

Sometimes members faced with situations that enable them to

receive the pressures given to him. This pressure can interfere
with objectivity.

b. Is not practical to express and describe all situations in which

pressures may occur. Size reasonableness (reasonableness)
should be used in setting standards for identifying relationships
that may or may impair objectivity visible member.
c. Relationships which allow prejudice, bias or influence others
to violate objectivity should be avoided.
d. Members have an obligation to ensure that those who terilbat
in the provision of professional services adhere to the principle
of objectivity.
e. Members shall not accept or offer any gift or entertainment
that is believed to cause undue influence on their professional
judgment or to persons associated with them. Members should
avoid situations that can make their professional position
tarnished.
5. Competence and Circumspection Professionals
Each member shall perform professional services with
circumspection, competence and diligence, and have an obligation to
maintain the knowledge and professional skills at the level that
required to ensure the client or employer obtain the benefit from the
services of competent professionals based on the development of
practice, legislation, and techniques latest.
Competence acquired through education and experience.
Members are not allowed to describe the experience of reliability
competence or experiences that are not a member mastered yet or
experienced members.
Professional competence can be divided into two separate
phases:
i. Achievement of Professional Competence.
13

This achievement was initially required a high standard of

general education, followed by special education, training, and
professional examinations in the relevant subjects. This becomes a
normal pattern of development for members.
ii.

Maintenance of Professional Competence.

Competence must be nurtured and maintained through
commitment, maintenance of professional competence requires
awarenesess to continue to follow the development of the
accounting profession, and the members must implement a
program designed to ensure the presence of quality control over the
implementation of a consistent professional services. Meanwhile,
professional prudence requires members to meet professional
responsibility with competence and diligence.

6. Confidentiality
In general activities of the auditor is checking some that should
not be a lot of people know, but for the professional, the auditor shall
maintain the confidentiality of client auditing. Each member shall
respect the confidentiality of information obtained subs perform
professional services and must not use or disclose such information
without consent.
a. Members have an obligation to respect the confidentiality of
information about a client or employer obtained through
professional services rendered. The obligation of confidentiality
continues even after the relationship between the members and the
client or employer ends.
b. Confidentiality must be maintained by members unless special
approval has been granted or there is a legal or professional
obligation to disclose information.

14

c. Members have an obligation to ensure that staff under the

supervision and the people who requested the advice and assistance
to respect the principles of confidentiality.
d. Confidentiality is not merely a matter of disclosure. Confidentiality
also requires members to obtain information during the conduct of
professional services do not use or look terse but use information
for personal gain or benefit third parties.
e. Members who have access to confidential information pliers ten
service recipients should not disclose it to the public. Therefore,
members should not make disclosures that are not approved
(unauthorized disclosure) to others. This does not apply to the
disclosure of information with the objective of fulfilling the
responsibility of members according to professional standards.
f. The public interest and the profession demands that professional
standards relating to confidentiality defined and that there is
guidance on the nature and extent of the obligation of
confidentiality as well as to a variety of circumstances in which the
information obtained during the conduct of professional services
can or should be disclosed.
g. The following are examples of things that must be considered in
determining the extent to which confidential information may be
disclosed.
i.

If the disclosure is permitted. If approval is given by the

recipient to reveal the services, the interests of all parties,
including third parties whose interests may be affected should
be considered.

ii.

Disclosures required by law. Some examples where members

are required by law to disclose confidential information are:
1. to

produce

documents

or give

evidence

proceedings; and
2. to disclose a violation of law to the public.
15

in

legal

iii.

When there is a professional obligation or right to disclose:

1. to comply with the technical standards and rules of ethics;
Such disclosure is not contrary to the ethical principles;
2. to protect the professional interests of members of the court;
3. to comply with the quality peneleahan (or study colleagues)
IAI or profesionallainnya body; .and. to respond to the
request or investigation by IAI or regulatory agencies.

7. Professional Conduct
Each member should behave consistent with good professional
reputation and avoid actions that could discredit the profession.
Obligation to avoid actions or behavior that could discredit or reduce
the level of the profession must be met by members of sebagai
embodiment of responsibility to the recipients of services, third party,
other members, staff, employers and the general public.
8. Technical Standards
Each member must carry out in accordance with the technical
standards of professionalism and professional standards set out in
relevant. Technical standards and professional standards that must be
adhered to members is the standard issued by the IAI, the International
Federation of Accountants, regulatory agencies, and relevant
legislation.

2.4.

CODE OF ETHICS FOR ACCOUNTANTS: INTERNATIONAL

FEDERATION OF ACCOUNTANTS (IFAC)

In June 2005, IFAC professional organizations have published a code

of conduct in a complete and very detailed. Guidelines for this code,
consists of three parts:

16

1. Part A. It contains fundamental principles of professional ethics that

applies to the entire accounting profession and also provides the
conceptual framework for applying those principles.
2. Part B. It contains more details concerning the application of the
conceptual framework and fundamental principles in Part A to specific
situations, especially for those who practice as a public accountant.
3. Part C. It contains more details about the framework of concepts and
fundamental principles in section A to be applied to specific situations,
especially for business accounting profession.

2.5.

STRUCTURE AND FRAMEWORK OF THE IFAC CODE OF

ETHICS
The mission of the International Federation of Accountants, as set
out in its constitution is to develop and enhance the global accountancy
profession with harmonized standards so as to provide the highest quality
service consistently for the benefit of the public.
As was said brooks (2007), a code of ethics adopted by the IFAC
provides the latest treatment of the provisions relating to indefedensi and
interests. By because IFAC's mission is to harmonize standards among
members of IFAC members in the future, it is very fitting that this IFAC
code of ethics that earnest attention.
The basic framework as the IFAC code of ethics which is depicted
in Figure 2.1 and Figure 2.2 can be described as follows:
1. The distinguishing feature of the accounting profession is the awareness
that the accountant obligation is to serve the public interest
2. It should be understood that the responsibility of accountants are not
exclusively only serve clients (from the standpoint of public
accountants), or simply serve boss (accountant business), but rather
serve in terms of broad public accountant.
3. The purpose (objective) of the accounting profession is meeting the
expectations of professionalism, performance, and the public interest.
17

4. To achieve these objectives, we need four basic needs: credibility,

professionalism, high quality services, and confidentiality.
5. The principles of fundamental behavior, namely: integrity, objectivity
and professional compensation prudence, confidentiality, professional
behavior, and technical standards.
6. the principle of the five fundamental principles in item can only be
applied if the accountant has an independent attitude, independent both
in mind (independence in mind) and independent in appearance
(independence in appearance)

Figure 2.1

18

Figure 2.2

2.6.

FUNDAMENTAL PRINCIPLES

Fundamental Principles of Ethics consists of :

1.

Integrity
A professional accountant should be straightforward and honest in all
professional and business relationships.
a. The principle of integrity imposes an obligation on all professional
accountants to be straightforward and honest in all professional and
business relationships. Integrity also implies fair dealing and
truthfulness.
b. professional accountant shall not knowingly be associated with
reports, returns, communications or other information where the
professional accountant believes that the information:
a) Contains a materially false or misleading statement;
b) Contains statements or information furnished recklessly; or
c) Omits or obscures information required to be included
where such omission or obscurity would be misleading.

19

When a professional accountant becomes aware that the accountant

has been associated with such information, the accountant shall
take steps to be disassociated from that information.
2.

Objectivity
A professional accountant should not allow bias, conflict of
interest, or under influence of others to override professional or
business judgment.
a. The principle of objectivity imposes an obligation on all
professional accountants not to compromise their professional or
business judgment because of bias, conflict of interest or the undue
influence of others.
b. A professional accountant may be exposed to situations that may
impair objectivity. It is impracticable to define and prescribe all
such situations. A professional accountant shall not perform a
professional activity or service if a circumstance or relationship
biases or unduly influences the accountants professional judgment
with respect to that service.

3.

Professional competence and prudence

A professional accountant has a continuing duty to maintain
professional knowledge and skill at the level required to Ensure that a
client or employer receives competent professional services based on
current developments in practice, legislation, and techniques. A
professional accountant should act Dilligently and in accordance with
applicable technical and professional standards when providing
professional services.

4.

Confidentiality
A professional accountant should respect the confidentiality of
information acquired as a result of professional and business
relationships and should not disclose any Reviews such information to
20

third parties without proper and specific authority UNLESS, there is a

legal or professional right or duty to disclose. Confidential
information acquired as a result of professional and business
relationships should not be used for the personal advantages of the
professional accountant or third parties.
5.

Professional Behavior
A professional accountant should comply with relevant laws
and regulations and should avoid any action that discredits the
profession. This includes actions that a reasonable and informed third
party, weighing all the specific facts and circumstances available to
the professional accountant at that time, would be likely to conclude
adversely affects the good reputation of the profession.
In marketing and promoting themselves and their work,
professional accountants shall not bring the profession into disrepute.
Professional accountants shall be honest and truthful and not:
a. Make exaggerated claims for the services they are able to offer, the
qualifications they possess, or experience they have gained; or
b. Make disparaging references or unsubstantiated comparisons to the
work of others.

2.7.

RELATION OF ETHICAL PRINCIPLES

PRINCIPLES OF ETHICS IFAC

IAI

AND

THE

The Indonesian Institute of Accountants or Ikatan Akuntan

Indonesia (IAI) is in the process of adapting IAASB pronouncements as
national standards. IAI is still doing some research on how these standards
would be implemented and also trying to translate them to the national
language. There is a plan to adopt IAASB pronouncements as issued in the
2009 IAASB Handbook.

21

Realizing this, the officers and members of IAI have discussed

about readiness of IAI to adopt technical standards and international code
of ethics by utilizing a variety of forums, such as congresses, seminars,
workshops, training and e.t.c. The latest news, IAI officials determined as
soon as possible the accounting profession in Indonesia to adopt the
technical standards and conduct was issued by the International Federation
of Accountants (IFAC).

22

CHAPTER III
VIOLATIONS OF THE CODE OF ETHICS ACCOUNTANTS
3.1.

THE CASE

Gayus Halomoan Partahanan Tambunan or Gayus Tambunan was

born in Jakarta, May 9, 1979; age of 33 years is a former civil servant at
the Directorate General of Taxation, Ministry of Finance of Indonesia. His
name became famous when Komjen Susno Duadji mentions that Gayus
had money Rp 25 billion in foreign currency accounts plus Rp 60 billion
and Rp 14 billion in jewelry bank vaults on behalf of his wife and that all
suspected illicit treasure.
Gayus Tambunan became famous not because of his actions are
commendable, but on the contrary, reproach. Category three of civil
servants working in the tax directorate ever engineered tax payments for
big businesses to the detriment of state money is not small. Over the way it
works, the aggrieved government, employers benefited, and Gayus
Tambunan itself gets its share. According to information, the benefits
obtained by Gayus actually not a big yet, that has not reached the number
of digits trillion rupiah. However, what he does, make the country loses,
the orderly administration of an institution that should be maintained to be
damaged. Moreover, public confidence in the country should be
maintained as well as possible disturbed. It can not be imagine what will
happen when the case, resulting in the spirit of the community to pay taxes
to be decreased. The picture, of course should not happen.
23

Following the storyline manipulation of the tax, which is actually

doing mischief not only Gayus Tambunan, but there are also others, at
least entrepreneurs taxpayers associated with the case. Not less than 140
large companies that have dealt Gayus. Thus, mischief it actually involves
a number of many people. So, delinquency Gayus Tambunan is due
persuasion taxpayers are also just as bad. Then it might be the behavior of
Gayus Tambunan uncomplimentary it is formed by the environment. For
instance, he does not work in the institution, will not make the mistake that
so bad.
Data flow of funds in various accounts Gayus exhibit a strong
indication that the mountain of money that is related to his work as the tax
authorities, which takes care of the taxpayer's objection about the amount
of money they deposited into the state treasury. Listed in its, Gayus
property is an accumulation of various bank transfers from many parties,
both of individu and companies. Its value varies, ranging from Rp 100
million to billions of rupiah. In examining attorney, Gayus claimed to have
23 accounts at five banks: BCA, Panin, Mandiri, BRI and Bank DKI. The
last registered in the name of his wife, an employee at the Jakarta City
Council.
Of the development process of the case investigation, it founded
the flow of funds amounting to Rp 370 million in other accounts at the
Bank of Gayus H. Tambunan BCA. The money is known from two
transactions of PT.MEGA Cipta Jaya Garmindo. PT. Mega Cipta Jaya
Garmindo is a company owned by Korean businessman, Mr. Son and
engaged in garment. Transactions carried out in two stages on September
1, 2007 amounted to Rp. 170 million and August 2, 2008 amounted to
Rp. 200 million. After have researched and investigated, Rp.370 million is
known not constitute corruption and money laundring but pure tax
evasion. The money is intended to help the establishment of the tax
administration garment factory in Sukabumi. However, after checking, the
owner Mr. Son, Koreans, not known where he was. The money goes to
24

Gayus H. Tambunan account but it does not take care of his tax
Gayus. The money is not used by Gayus and not returned to Mr. Son so
that only keep on account of Gaius. P-19 files with instructions on
prosecutors to block and then confiscated money around Rp 370
million. In the instructions, the researchers also asked prosecutors
investigating police (Polri) outlines in dossier (BAP) the description and a
description of the suspect (Gayus H. Tambunan). Allegations of fraud are
carried Gayus disclosed by Cirrus Sinaga separately and differently basic
handling of the case handling money laundring, embezzlement and
corruption of Rp 25 billion which was originally alleged to Gayus. Cirrus
and prosecutors did not mention Rp 25 billion more from Roberto
Santonio transactions, a tax consultant. Attorney did not offend if they
ever ordered police investigators to block and confiscate money from
Roberto to Gayus account worth Rp 25 billion.
Earlier, police investigators through Margiani Superintendent, in
his press conference revealed that the prosecution investigators in the
instructions (P-19) File Gayus ordered investigators to seize the amount of
three suspicious transactions in the account of Gayus. The three
transactions were known to have come from the two parties, namely
Roberto Santonio and PT. Mega Jaya Citra Termindo. Transactions
originating from Roberto, who is known as a tax consultant is worth
Rp. 25 million, while the PT. Mega Jaya Citra Termindo worth Rp. 370
million. The transaction took place on March 18, June 16 and August 14,
2009. The money worth Rp. 395 million were confiscated by the
instructions of the prosecutor of the case investigators.
On April 7, 2010, Commission III sniff a three-star general in the
police allegedly involved in the case of Gayus H. Tambunan and someone
named Syahrial Johan involved in tax evasion case Gayus H. Tambunan
involving, from embezzled by Gayus around Rp 24 billion, Rp. 11 billion
flowed to the police officials, Rp. 5 billion to the prosecutorial authorities
and Rp. 4 billion in the judiciary, while the rest flows to the lawyers.
25

Markus related taxes in the company Bakrie Group, Gayus claimed

to receive Rp 65 billion from the current Bakrie Group corporate tax
attenuate Kaltim Prima Coal, Bumi Resources, and Arutmin. Allegedly
money was also flowing to a number of officials of the Directorate
General of Taxation.

3.2.

CASE ANALYSIS
From the explanation above, if it is associated with the Accounting
Profession Ethics is now agreed by the Indonesian Institute of Accountants
and has declared recognition of the profession will be its responsibility to
the public, service users accountant, and colleagues, so these principles
guide the members in fulfilling their professional responsibilities and the
basic foundation of ethical behavior and professional conduct, and this
principle for commitment to behave honorably, even to sacrifice personal
gain. Then it was predictable that Gayus had broken the principles of the
Accounting Profession Ethics, including:
1. First PrincipleResponsibility Profession
In principle responsibilities as professionals, each member is
obliged to use moral and professional judgment in conducting its
activities. In the case of the State's financial tax wiping, "Gayus" has
forgotten
the
responsibility
(not
responsibility)
as
a
profession. "Gayus" as the taxation authorities should have a
responsibility to all users of their professional services. Tax officials
should always be responsible for working with fellow members of the
profession to develop, maintain public confidence, and carry out
professional responsibilities in organizing themselves in a professional
manner in building the Nation.
2. The second principleThe Public Interest
Each member is obliged to always act within the framework of
public services, honor the public trust, and demonstrate commitment to
the professionalism. "Gayus" clearly does not respect the public trust
26

(public trust). meanwhile the main characteristics of a profession is

acceptance of responsibility to the public. The official profession plays
an important role in society, in which the public are composed of
clients, creditors, government, employers, employees, investors,
business and finance, and others rely on the objectivity and integrity of
these officers in maintaining the functioning in orderly. This
dependence raises the responsibility of these officials to the public
interest. The public interest is defined as the interests of society and
institutions that served members as a whole. This dependence causes
the attitudes and behavior of the relevant authorities in providing
services affect the economic well-being of society and the State, and
all of it was not done by the tax authorities "Gayus".
3. Third principleIntegrity
Integrity is a unity that underlies the emergence of professional
recognition. Integrity is the underlying quality of the public trust and
standard for testing the members in all decision. "Gayus" not at all
thinking about the high integrity of fairness because the officers had
lied to the public, in terms of behavior officials have used the public
confidence to fulfill personal desires. Integrity requires an officer to,
among other things, being honest and forthright without compromising
confidential service recipients. Services and public trust should not be
defeated by personal gain. Integrity can receive unintentional mistakes
and honest differences of opinion, but can not accept the principle of
cheating or negation. Integrity is measured in the form of what is right
and fair. In the absence of rules, standards, specific guidelines or in the
face of contrary opinion, members should examine the decisions or
actions by asking whether the member has done what an integrity will
do and whether members have been keeping her integrity. Integrity
requires members to adhere to both the form and spirit of technical and
ethical standards. Integrity also requires members to follow the
principles of objectivity and professional prudence.
4. Fourth PrincipleObjectivity
Objectivity is a quality that gives the value of the services
provided by officials. The principle of objectivity requires being fair,
impartial, intellectually honest, not prejudiced or biased, and free of
conflicts of interest or be under the influence of others. While "Gayus"
didnt show an indication like we said before because it is contrary to
27

the principle of Objectivity which should work in many different

capacities and should demonstrate their objectivity in various
situations. Gayus had to sort and make the choice of WP will provide
personal gain for him is to receive a "bribe" or success fees from
them. Gayus is not strong the pressure and temptation of WP are
handled so thats going to interfere with objectivity, and Gayus could
not measure the level of fairness that can be used to define a standard
for identifying relationships that might impair its objectivity, so he was
not able to resist or avoid it.
5. Fifth PrincipleCompetence and Prudential Professionals
Each member shall perform professional services with
circumspection, competence and diligence, and have an obligation to
maintain the knowledge and professional skills at the level that
required to ensure the client or employer obtain the benefit from the
services of competent professionals based on the development of
practice, legislation, and techniques latest.
"Gayus" had abused competence and prudence professional for
personal purpose is to reap the benefits as much just for personal
pleasure. Competence and Professional prudence that should be used
and applied for the benefit of nation building through taxing
professional Precautionary requires officials to fulfill their professional
responsibilities with competence and diligence. This implies that it
should have an obligation to perform professional services with the
best according to his ability, for interests of service users and
consistent with the responsibilities of the profession to the
public. Competence acquired through education and experience. In the
case of professional assignment exceeds competence of members or
the company, members shall conduct consultation or submit a client to
another party who is more competent. Each member is responsible for
determining the respective competence or assess whether the
education, experience and adequate consideration needed to
responsibilities that must be fulfilled. Officials must be diligent in
fulfilling their responsibilities to the recipient and the public
services. Persistence implies fulfillment of responsibility for providing
services with immediate and careful, flawless and comply with
technical standards and ethics. Professional prudence requires officials
to plan and monitor closely any professional activity that becomes the
responsibility.

28

6. Sixth PrincipleConfidentiality
In general activities of the auditor is checking some that should
not be a lot of people know, but for the professional, the auditor shall
maintain the confidentiality of client auditing. Looking at the case
against tax irregularities committed tax officials "Gayus", it should be
really done secrecy for and in the interest of the State and nation
building and not to protect the interests of certain groups.
"Gayus" does not maintain the confidentiality of information
and does not respect the confidentiality of such information. Officials
have an obligation to ensure that staff under the supervision and the
people who requested the advice and assistance to respect the
principles of confidentiality. Confidentiality is not merely a matter of
disclosure. Confidentiality also requires officials to obtain information
during the conduct of professional services do not use or look terse but
use information for personal gain or benefit third parties. Officials who
have access to confidential information about the service recipient
must not disclose it to the public. Therefore, members should not make
disclosures that are not approved (unauthorized disclosure) to
others. This does not apply to the disclosure of information with the
objective of fulfilling the responsibility of members according to
professional standards. Public interest and profession demands that
professional standards relating to confidentiality defined and there is a
guide to the nature and extent of the obligation of confidentiality as
well as the various circumstances in which the information obtained
during the conduct of professional services can or should be disclosed.
7. Seventh PrincipleProfessional Conduct
Each member should behave consistent with good professional
reputation and avoid actions that could discredit the profession.
"Gayus" showed absolutely no professional behavior in the eyes of the
public, where the behavior of the profession clearly apparent harm to
the community of the nation and the State. Obligation to avoid
behavior that could discredit the profession must be met by members
as the embodiment of the responsibility to the recipient of services,
third party, other members, staff, employers and the general public.
8. Eighth PrincipleTechnical Standards
Each member must carry out in accordance with the technical
standards of professionalism and professional standards set out in
29

relevant. In the case of tax evasion by the tax authorities "Gayus" did
not found technical standards and professional standards in carrying
out its duties and responsibilities which should be in accordance with
applicable regulations and of course lead to the acceptance of national
income to development Nations in accordance with the applicable
standards and regulations. The expertise of Professional standards and
with careful, members have an obligation to carry out the assignment
of service recipients during the assignment in line with the principles
of integrity and objectivity. Technical standards and professional
standards that must be adhered to is the standard issued by the
Indonesian Institute of Accountants, the International Federation of
Accountants, regulatory bodies, and legislation relevant.

30

CHAPTER IV
CONCLUSION

Professional accountants must develop assessment, values and character

that can embrace the public expectations, which can not be separated in
accountability-oriented stakeholders and governance framework. Code of Conduct
updated in order to be better guidelines for professional accountants and ensure
that personal interests are unbearable, bias, and / or misunderstandings do not
obscure independent way of thinking professional accountant or raises a
continuing lack of independence of the professional accountant.
In the case of embezzlement Gayus ethical principles are being violated by
the IAI, namely Responsibility Profession, Public Interest, integrity, objectivity,
competence and Prudential Professionals, Confidentiality, Professional Conduct,
and technical standards. It is a negative impact on the institution taxation, for
being negligent in supervising the actions of individual tax officials, coupled with
abetting tax image in the public eye with this case.

31

BIBLIOGRAPHY

http://anjararifw.blogspot.com/2014/12/pelanggaran-etika-profesi-akuntansi.html
http://anhyhandayaniunismuh12.blogspot.com/2014/03/pelanggaran-etika-bisnisdalam-bidang.html
https://liahibatha.wordpress.com/2010/12/17/kasus-makelar-pajak-gayustambunan-dilihat-dari-kacamata-etika-profesi-akuntan/
http://andrynugrohosusanto.blogspot.com/2012/12/kronologi-kasus-gayustambunan.html
http://septikomariyah.blogspot.com/2013/05/makalah-gayus-tambunanpelanggaran-etika.html
http://www.iaiglobal.or.id/tentang_iai.php?id=18
http://lidya-charming.blogspot.com/2010/09/kode-etik-iai.html
http://pupujuniar.blogspot.com/2012/10/kode-etik-akuntan-dan-delapanprinsip.html
www.ifac.org

iii