A FACTOR: RELATIONSHIP BETWEEN THE LEVEL SERIOUSNESS

OF ACCOUNTING PRACTICE VIOLATIONS ON EMPLOYEE’S

INTENTION TO CARRY OUT WHISTLEBLOWING ACTIONS

BY
TAMARA SYVA PRATIWI
B1034161017
 INTRODUCTION

There are so many cases of violations of accounting practices that

occur in a company resulted in the tarnishing of the name of an accounting
profession in the eyes of investors, stakeholders, and the outside community.
This is inversely proportional to how the accounting profession should be a
profession that requires trust value and is free from the influence of any party
(Devi Novita Sari & Herry Laksito, 2014).

An accountant should be able to know and detect when there is a

breach of practice in a management. The behavior they must have is to ‘voice’
and report the violation to the parties that concerned. Whistleblowing is one
of the right ways to overcome the practice violations that occur in the
management. However, in most of the cases that have occurred, they are
worried about the consequences that they will face after doing a
whistleblowing. In addition, because of there are so many cases of accounting
practices violations that can occur, accountants are less able to understand
how the level seriousness of accounting practice violations can affect their
intention to do whistleblowing action.
 Whistleblowing action is an employee's effort to overcome the occurrence
of violations that occur in a company. Whistleblowing is also carried out on the basis
of fraud that occurs such as corruption, bribery, and even money laundering
(Rohmaida Lestari & Rizal Yahya, 2017). An accountant has certainly studied the
standards that must be applied to accounting practices. If there is a practice that is
beyond the standard set, the accountant must assume that an unethical violation has
occurred in a company's management and must be addressed immediately.

As we can see from Transparency International (2016) in the 2015

Corruption Perception Index (CPI), Indonesia finally rise 2 points and currently in
position 19, this fact prove that Indonesia has improved in minimizing corruption,
although there is still a corruption case that covered in law and politics fields
(Rohmaida Lestari & Rizal Yahya, 2017). The example is the issue of the refusal of the
Nasdem party to sign the integrity system made by the KPK. They rejected the matter
of the whistleblower because according to them, the whistleblower would break the
teamwork of a political party that had been built from the beginning of the formation
of the political party. Although after assuming that, Nasdem has claimed to have
implemented points related to the integrity of political parties such as implementing a
nominating mechanism without political dowry, as well as cracking down on party
cadres who have committed corruption.
 The issue of whistleblowing has received much attention in global. However,
many studies using respondents and samples from different populations, because it can
be concluded that each respondent's take and samples from different populations will
produce different study results. For examples, such as studies from (Yudha Priangga
Putra, 2018) using respondents and samples from KPP employees in Kebumen area, as
well as studies from (Muhammad Fajri Prasetyo, Pupung Purnamasari, Mey Maemunah,
2017) that using respondents and samples from OJK’s employees in regional 2 West Java
area, while in this study the authors used respondents from accountant employees in
the public accounting firm in the Pontianak area.

This study can also help readers or academics to identify the types of cases
that can affect employees to carry out whistleblowing actions, inform employees that
whistleblowing action is the right action to overcome a violation at a certain level, and
provide knowledge to the public about various violation cases that can occur on an
organization. The author's purpose is to examine and analyze the relationship between
the level seriousness of accounting practic violations on employee’s intention to conduct
whistleblowing actions.