THE CODE OF ETHICS FOR PUBLIC ACCOUNTANT IN

PERSPECTIVE OF ISLAMIC FUNDAMENTAL GUIDELINES

Eva Lusiana1
1
Faculty of Economics and Business, Airlangga University, Indonesian
email: eva.lusiana-2019@feb.unair.ac.id

Abstract

The preparation of the Public Accountant (AP) professional code of ethics has been designed in detail.
However, in practice the number of violations against the professional code of ethics is performed by AP is
still high. This research is expected to provide a review and views for the drafting team of the Public
Accountant Professional Code of Ethics for more pay attention to and reconsider the principles of faith and
obedience towards Islamic values based on Al-Quran and As-Sunnah. This research using library research
to collect research data. Researcher collect information on Islamic values regarding the important role of
ethics in life and analyze it and hope it can be internalized within the next draft of the Public Accountant
Professional Code of Ethics. Implementation the principle of faith and adherence to Islamic values will go
well if Islamic character education is taught to every AP and prospective AP through academic and non-
academic activities.

Keywords: Public Accountant Professional Code of Ethics, Islam, Al-Quran, As-Sunnah

Abstrak
Penyusunan kode etik profesi Akuntan Publik (AP) telah dirancang secara rinci. Namun, pada prakteknya
jumlah pelanggaran terhadap kode etik profesi yang dilakukan oleh AP masih tinggi. Penelitian ini
diharapkan dapat memberikan ulasan dan pandangan bagi tim penyusun Kode Etik Profesi Akuntan Publik
untuk lebih memperhatikan dan mempertimbangkan kembali prinsip keimanan dan kepatuhan terhadap
nilai-nilai Islam berlandaskan Al-Quran dan As-Sunnah. Penelitian ini menggunakan library research untuk
mengumpulkan data penelitian. Peneliti mengumpulkan informasi nilai-nilai Islam terkait peran penting
etika dalam kehidupan dan menganalisisnya dan berharap dapat diinternalisasi ke dalam rancangan Kode
Etik Profesi Akuntan Publik selanjutnya. Pengimplementasian prinsip keimanan dan kepatuhan terhadap
nilai-nilai Islam akan berjalan dengan baik apabila pendidikan karakter Islami diajarkan kepada setiap AP
maupun calon AP melalui kegiatan akademik maupun non akademik.

Kata kunci: Kode Etik Profesi Akuntan Publik, Islam, Al-Quran, As-Sunnah
INTRODUCTION
Ethics profession as an important foundation of accountants
in carrying out activities professionalism so that fraud does
not occur and add new problems (IAI, 2020). However, in
practice, there are many cases of violations of the
professional code of ethics accountants especially Public
Accountants (AP) in Indonesia. Some cases even ensnare AP
who is a member of the Big 4 Public Accounting Firm
(KAP). Quoting from Kampai (2020), several phenomenal
cases that ensnared KAP big 4 in Indonesia such as the case
of Jiwasraya - KAP PricewaterhouseCoopers (PWC); SNP
case Finance – KAP Deloitte; the case of PT Hanson
International Tbk, PT Tiga Pilar Sejahtera Food Tbk, and
Indosat Ooredoo – KAP Ernst Young; The Baker Hughes
Case – BDO International Limited; The case of PT Garuda
Indonesia.
The scandal case above, AP is required to always behave
professionals anywhere and under any conditions without
exception. Professionalism relating to AP compliance in
implementing the accounting profession's code of ethics.
Ikatan Akuntan Indonesia (2020) states that the contents of
the code of ethics for the accounting profession namely
requirements and application material for accountants in
carrying out their responsibilities profession to protect the
public interest includes shareholders and stakeholders (IAI,
2020). Protecting the public interest is the basis of
differentiation between the accounting profession and other
professions. Therefore, the accounting profession is valued as
a profession with the title of public trust. This shows that
Accountants have the duty and responsibility to maintain
authenticity and fairness of entity financial reports for the
benefit of shareholders and stakeholders (IAI, 2020).
Public accountants are responsible for assessing and
providing opinions on the fairness of an entity's financial
statements. Therefore, AP is parties trusted by the public in
disclosing the transparency of financial reports an entity .
Ethical aspects of the accounting profession public has a
significant effect on AP's capacity to analyze fairness and find
misstatements in financial statements so that they can be
accounted for to the public (Alrabba, 2016). This is expected
to help shareholders and stakeholders to make decisions
correctly and correctly (Azis, 2020).
The code of ethics for the accounting profession is related to
several ethical principles that apply for the accounting
profession. Ikatan Akuntan Indonesia (2020) stipulates that
there are 5 the basic principles of accountant ethics namely,
1) Integrity (straightforward and honest), 2) Objectivity (no
bound and not compromising professional judgment), 3)
Competence and Professional Due Diligence (having
professional knowledge and expertise as well as act according
to applicable professional and technical standards), 4)
Confidentiality (maintain the confidentiality of information),
and 5) Professional Behavior (comply with regulations
current regulation). The Indonesian Accountants Association
code of ethics in section 120 directs accountants to be aware
of various activities, interests, and an indicated professional
relationship could create a compliance threat apply basic
principles of professional ethics that accountants may
encounter while serving public (IAI, 2020).
Purpose the preparation of a standard code of ethics for the
public accounting profession to improve public trust in AP
and expanding accountant contributions to public as well as
one of the driving factors of the economy in Indonesia (IAI,
2020). Research Clayton & Van Staden (2015); Jelic (2012)
indicated preparation of a code of ethics aims to mitigate the
occurrence of deviant behavior and unethical actions in
carrying out their professional activities. Public accountant
apart from having to have broad competence and experience,
AP is obliged to maintain commitment to apply the AP
professional code of ethics while carrying out their duties the
professional.
The impact of violations of the professional code of ethics
committed by AP namely low audit quality so that this is
detrimental to shareholders and stakeholders (Jelic, 2012).
The main causes of violations of the code of ethics are: the
application of the code of ethics for the accounting
profession, especially in Indonesia itself, tends to base on the
material and rational philosophy of capitalism (Nurhidayah,
2008). Other factors that cause violations of the code of
ethics are pressure from AP work environment and the
discrepancy between the values in the code of ethics and
existing business changes (Clayton & Van Staden, 2015).
Besides that, the relationship too close between the client and
the AP also triggers a violation of the code of ethics by APs,
because this can affect the independence of APs as well as
internal bias in audit considerations and decisions (Roza et
al., 2019).
Allah SWT wants quality work and does not conflict with the
guidelines of human life. Al-Quran as a guide for human life,
work kindness, work of worship, work of piety or good deeds
see that work is nature of human life. Al-Quran confirms that
life is for worship (Qs. Adz-Dzariat: 56). Therefore, work
because the basis of worship is able to move motivation to
work seriously, as written in QS. At-Taubah [9]: 105 below.
ُ ‫ِل اۡع َم ُلۡو ا َفَسَيَر ى ُهّٰللا َع َم َلُك ۡم َو َر ُس ۡو ُلٗه َو اۡل ُم ۡؤ ِم ُنۡو َنؕ‌ َو َس ُتَر ُّدۡو َن ِاٰل ى ٰع ِلِم اۡل َغ ۡي ِب‬
‫َو الَّش َهاَد ِة َفُيَنِّبُئُك ۡم ِبَم ا ُك ۡن ُتۡم َتۡع َم ُلۡو َن‬
“Do [as you will], for Allāh will see your deeds, and [so will]
His Messenger and the believers. And you will be returned to
the Knower of the unseen and the witnessed, and He will
inform you of what you used to do.” (QS. At-Taubah [9]: 105)
Two main requirements for work to be worth worship and
become good deeds, including 1) al-ikhlas means having the
right motivation, namely to do things that are good and useful
for life with the ultimate goal of winning the pleasure of
Allah SWT. 2) Al-mutaba'ah means fully in accordance with
the demands taught by religion through Prophet Muhammad
SAW for special worship work and does not conflict with a
religious provision in terms of public worship (Rakhmawati,
2020).
Religion is the highest guideline of the ethical rules of the
 accounting profession, this thing because religion is the ‫اْلَك ِذَب َيْهِد ى ِإَلى اْلُفُجوِر َو ِإَّن اْلُفُجوَر َيْه ِد ى ِإَلى الَّناِر َو َم ا َيَز اُل الَّرُجُل َيْك ِذ ُب‬
source of all sources of rules (Rakhmawati, 2020). Based on ‫َو َيَتَح َّر ى اْلَك ِذَب َح َّتى ُيْك َتَب ِع ْن َد الَّلِه َك َّذ اًبا‬
statistical data from the Indonesian Ministry of Religion
(2022), the population of Indonesia as of June 2022 the “It is obligatory for you to tell the truth, for truth leads to
majority embraced Islam with a total of 231,069,932 people. virtue and virtue leads to Paradise, and the man who
Islam has two fundamental guidelines, namely the Al-Quran continues to speak the truth and endeavours to tell the truth is
and As-Sunnah (often called Al-Hadith). Both of these eventually recorded as truthful with Allah, and beware of
guidelines have taught about ethics in conducting business telling of a lie for telling of a lie leads to obscenity and
activities (Juliyani, 2016). obscenity leads to Hell-Fire, and the person who keeps telling
lies and endeavours to tell a lie is recorded as a liar with
Al-Qur'an as the first guide that contains guidelines for life in Allah.” (HR. Al-Bukhâri (no. 6094) dan Muslim (no. 2607))
the world and in Hereafter for all mankind (especially
Muslims). One content Al-Qur'an is an explanation of human Prophet Muhammad SAW as the messenger of Allah SWT
character or behavior in carry out muamalah. Muamalah has a duty to improve human morals by providing examples
regulates the relationship between interactions humans as and lessons to his people, as the Word of Allah SWT in QS.
social beings to continue to run in accordance with Islamic Al-Ahzab verse 21 which reads:
law (Septyan dan Julianto, 2018). As-Sunnah (Al-Hadith)
serves as reinforcement Qur'anic law, provides details and ‫َلَقۡد َك اَن َلُك ۡم ِفۡى َر ُس ۡو ِل ِهّٰللا ُاۡس َو ٌة َحَس َنٌة ِّلَم ۡن َك اَن َيۡر ُجوا َهّٰللا َو اۡل َيۡو َم اٰاۡل ِخ َر َو َذ َك َر َهّٰللا‬
further explanation of the statement which are still global in ‫َك ِثۡي ًرا‬
nature, and establish new laws that do not exist on Al-Qur’an.
As-sunnah contains the words, behavior, character and morals “There has certainly been for you in the Messenger of Allāh
of the Prophet Muhammad SAW (Indonesian Ministry of an excellent pattern for anyone whose hope is in Allāh and
Religion, 2022). Some authentic hadiths with strong sanad the Last Day and [who] remembers Allāh often.” (QS. Al-
that must be followed by Muslims, among others, Hadith Ahzab: 21).
History Bukhari (HR. Bukhari), Hadith History of Muslim
"(HR. Muslim), and Hadith History Bukhari & Muslim (HR. There are many factors that lead to violations of the code of
Bukhari & Muslim or called Muttafaqun 'Alaih). ethics profession, so there is a need for internalization of
Islamic religious values. Internalization Islamic religious
Islamic religion stipulates that there are 5 (five) Islamic laws, values based on the Al-Quran and As-Sunnah play an
among which are mandatory; unclean or prohibition to do; important role in mitigating cases involving the public
sunnah means better to do; makruh means more neither is accounting profession (Azis, 2020; Ilyas et al., 2019;
done; and mubah or permissible to do or not. Auditors Pravitasari, 2015). Therefore, internalization is necessary
Muslims as AP must implement the principles of muamalah reconsidered in the preparation of the code of ethics of the
fiqh in carry out their professional duties. Fiqh muamalah public accounting profession. It is hoped that the
regulates interactions between humans (as social beings) in implementation of the AP code of ethics can work more
accordance with the orders and prohibitions of Allah SWT effectively.
along with the five Islamic laws above (Bastina, 2020).
The pressures from the AP work environment make the
The code of ethics for the accounting profession in the auditor experience ethical dilemma issues. Seeing that the
perspective of Islamic religious fundamental guidelines must majority of auditors are not from the wealthy understand
be based on Islamic syari'at which is flexible, permanent, and Islamic law and jurisprudence so that they have di fficulty in
thoroughly (Ilyas et al., 2019; Pravitasari, 2015). Efforts to resolve the dilemma (Iswanaji dan Wahyudi, 2017).
design and publish standards the code of ethics for However, the rules of fiqh muamalah makes it easier for
accountants based on Islamic law refers to Accounting and auditors to find solutions to problems ethical dilemma
Auditing Organization of Islamic Financial Institutions / (Bastina, 2020). Therefore, this research argues that it is
AAOIFI (Abdul Rahman, 2010). Code accountant ethics necessary the internalization of Islamic values into the AP
based on Islamic law is expected to motivate AP to behave professional code of ethics and commitment each AP to
and act ethically. This is due to an AP's fear of Allah SWT implement it during their professional activities. This is
and the belief that every action will be accounted for before because that level of competence and high experience is not
Him, so that work can be worth “worship”. able to guarantee that the Public Accountant carries out his
professional activities regularly adhere to the guidelines of
The large number of cases involving AP in Indonesia shows
the professional code of ethics so that the AP is able to avoid
this the falsehoods they commit by manipulating financial
actions unethical.
reports. Whereas In addition to violating the AP's
.
professional code of ethics, this attitude is also against the
METHODS
rules Allah SWT related to the virtue of honesty, as follows:
The object of research in this study comes from various
‫َع َلْيُك ْم ِبالِّص ْد ِق َفِإَّن الِّص ْد َق َيْه ِد ى ِإَلى اْلِبِّر َو ِإَّن اْلِبَّر َيْهِد ى ِإَلى اْلَج َّنِة َو َم ا‬ related literature code of ethics for the accounting profession
‫َيَز اُل الَّرُجُل َيْص ُدُق َو َيَتَح َّر ى الِّص ْد َق َح َّتى ُيْك َتَب ِع ْن َد الَّلِه ِص ِّديًقا َو ِإَّياُك ْم َو اْلَك ِذَب َفِإَّن‬ in the perspective of Islamic religious fundamental guidelines
as the religion of Rahmatan Lil'Alamin. Islam has two
guidelines fundamentals are Al-Quran and As-Sunnah. As-
Sunnah in question namely sourced from several authentic
hadiths whose sanad is strong and undeniable. Therefore, the
approach in this study uses the library research.
Library research is a study with various collection methods
information and data through documents, interpretations of
scriptures, scientific books, magazines, historical stories, and
so on (Mardalis, 1999). Apart from learning from several
reference books, library research can be sourced from
research results relevant and useful for obtaining a theoretical
basis regarding problem to be studied (Nazir, 1988; Sarwono,
2006). Collection of information in this research is then
assessed as an empirical fact that aim to provide advice and
input related to the draft code of ethics for the public
accounting profession furthermore.
This research analyzes Islamic values which are guided by
the Al-Quran and As-Sunnah. These two guidelines explain
the important role of an ethic for life. Information related to
Islamic values comes from the interpretation of the Al-
Qur’an and As-Sunnah (Al-Hadith) accessed through search
engines including Google, Mozilla Firefox, Translated Al-
Quran, Islamic books, and others. Next, researchers examines
the two guidelines relating to the ethics of life and analyze it
so that Islamic religious values can be internalized explicitly
into the draft professional code of ethics and the commitment
of each AP in implementing it these values when carrying
out their professional activities. This is to be expected to help
solve ethical problems of public accountants (auditors) in
Indonesia at the moment.
The code of ethics for the AP profession in an Islamic
perspective is based on Islamic law which are permanent,
general, and flexible (Ilyas et al., 2019). One attempt building
the code of ethics refers to the Accounting and Auditing
Organization of Islamic Financial Institution (AAOIFI) which
formulates and issues standards the code of ethics for
accountants originates from Islamic law (Abdul Rahman,
2010). Accounting and Auditing Organization of Islamic
Financial Institution is an organization that established in
1991 in Bahrain whose role is to regulate development
accounting standards for the Islamic finance industry
(Pomeranz, 1997). The essence of the code ethics in AAOIFI
shows that the principles contained are based on the values of
God and Faith (Ilyas et al., 2019).
The code of ethics for the Public Accountant profession in
this study originates from the Institute Indonesian Public
Accountants (IAPI) and Accountants and Auditors of Islamic
Financial Institutions (AAOIFI). The principles in AAOIFI
are based on values Belief and Faith guided by the Al-Quran
and As-Sunnah. Guidelines these Muslims are used in
implementing the AP professional code of ethics because
these two guidelines regulate in detail related to interactions
between humans. The interaction in question can include
actions and words that are pleasing to Allah Allah SWT and
those who are hated by Him. Allah SWT has guaranteed the
safety of the world and hereafter for those who hold fast to
the Al-Quran and As-Sunnah. Wallahu A'lam
RESULTS AND DISCUSSION
Seeing the cases that ensnare public accountants in Indonesia
are increasing, indicates that a solution is needed to mitigate
the case. Further exploration of the dimensions of ethical
action in practice is needed accounting professionals (Ilyas et
al., 2019). The accounting profession is the most is
responsible for the fairness of the expected financial
statements is not detrimental to shareholders and stakeholders
in making decisions.
The code of ethics for the accounting profession is related to
several ethical principles that apply for the accounting
profession. There are 5 (five) the basic principles of
accountant ethics namely, 1) Integrity (straightforward and
honest), 2) Objectivity (no bound and not compromising
professional judgment), 3) Competence and Professional Due
Diligence (having professional knowledge and expertise as
well as act according to applicable professional and technical
standards), 4) Confidentiality (maintain the confidentiality of
information), and 5) Professional Behavior (comply with
regulations current regulation).
Ethics profession as a foundation of ethics and must always
be upheld by the AP in carrying out their professional
activities. It is intended that the application of standards
behavior in the profession according to standards that are
regulated practically and realistically (Candra et al., 2017).
Therefore, a professional code of ethics is needed for public
accountants used as a guide in acting ethically and more
responsibly what to do. As the Word of Allah SWT contained
in QS. Al-Baqarah: 42,
‫َو اَل َتۡل ِبُسوا اۡل َح ـَّق ِباۡل َباِط ِل َو َتۡك ُتُم وا اۡل َح ـَّق َو َاۡن ُتۡم َتۡع َلُم ۡو َن‬
“And do not mix the truth with falsehood or conceal the truth
while you know [it].”
Referring to the interpretation of the Al-Qur’an by the
Ministry of Religion of the Republic of Indonesia in the verse
above shows that Allah SWT forbade mankind to mix or
combines the right things (truth, goodness, justice, and
others) with evil (munkar, crime, tyranny, mistakes, and
others) in each of its affairs (Indonesian Ministry of Religion,
2022). Man who Knowing that there is truth in a case, one
must have the courage to reveal it instead of hiding it for the
safety of some or a group of people. Public accountants as
independent external auditors must assess quality financial
reports of an entity in a transparent manner to stakeholders.
No need to join cooperate in manipulating financial reports to
make them look good in public investors, creditors, and so
on. Public accountants are prohibited from combining
between knowledge possessed, state law with bribes or other
gratuities for benefit yourself or a certain group of people.
The code of ethics for the accounting profession is designed
to uphold and ensure accountants act ethically. This means
that accountants in their duties serve the public and are
responsible responsibility to the public always provides
quality accounting service guidelines high and does not
violate ethical values (Ilyas et al., 2019). Presence of a code
of ethics serves as a control mechanism for the profession,
thereby reducing adverse effects of ethical issues among
public accounting practitioners. With thus, it facilitates the
creation of a practice environment and prioritizing the public
interest.
The code of ethics public accountants are very influential on
reputation and trust society in the AP profession. As
explained in the Preamble to the Code of Ethics Public
Accountant Profession which explains that the preparation of
the Accountant Code of Ethics Indonesia is expected to
increase public trust in accountants as well as increasing the
accountant's contribution to the interests of society and the
state as well as driving economic growth in Indonesia (IAPI,
2020).
Performance public accountants have a positive relationship
with professional ethics, meaning auditors whose
commitment is guided by a professional code of ethics, will
have an effect on the performance of public accountants is
getting better. However, if the public accountant does not
adhering to the code of ethics of the profession, then it can
reduce performance of public accountants (Ariani, 2010).
Consistent with Candra et al. (2017) which demonstrating
that violating the code of ethics can degrade quality auditors
performance. Islam as guided by Al-Quran and As-Sunnah,
has taught in detail about morals and human ethics in interact
as social beings.
Code of Professional Ethics for Accountants based on the
Indonesian Institute of Public Accountants (IAPI)
The code of ethics for the public accountant profession is
issued by the Indonesian Institute of Accountants compiled
by the Indonesian Institute of Accountants (IAI) and the
Institute of Management Accountants Indonesia (IAMI),
which is supported by the Center for Financial Profession
Development (PPPK) RI Ministry of Finance. The Indonesian
Accountants Code of Ethics is the adoption of Handbook of
the Code of Ethics for Professional Accountants 2018 Edition
which issued by the International Ethics Standards Board for
Accountants of The International Federation of Accountants
(IESBA-IFAC) (IAPI, 2020).
The Code of Public Accountant Professional Ethics contains
a set of basic principles and ethical rules profession that must
be applied by every registered public accountant IAPI
members or those who are not registered as IAPI members,
who provide professional services (insurance services and
non-insurance services) or those who work for business entity
(IAPI, 2020). The code of ethics is prepared on an ongoing
basis and adjust business developments and the economy to
improve quality performance of public accountants. Based on
IAPI in the AP Professional Code of Ethics which effective
July 1, 2020 in Section 110 Subsection 110.1-A1 states there
are 5 (five) basic principles of ethics that must be applied by
the auditor when carrying out their professional activities in
Table 1.
[Table 1 about here.]
Accountant Professional Code of Ethics based on the
Accounting and Auditing Organization for Islamic
Financial Institution (AAOIFI)
The code of Islamic Accountant Ethics is expected to
motivate the public accounting profession to act ethically and
professionally for reasons of fear of the Creator, religious
beliefs and good and true work will be worth worship. The
Accounting and Auditing Organization of Islamic Financial
Institutions (AAOIFI) is organization based in Bahrain and
founded in 1991. AAOIFI played a role regulates the
development of accounting standards for the Islamic finance
industry (Pomeranz, 1997). In addition, the standard code of
ethics for accountants was formulated and published by
AAOIFI could be an attempt to draft a code of ethics for
accountants based on Islamic law (Abdul Rahman, 2010).
The study conducted by Ilyas et al. (2019) revealed that the
code of ethics for Islamic accountants is relevant for
integration and taught in accounting education in Indonesia,
meaning the internalization of professional ethics Islamic
accountants into accounting education can be done through
ethics training integrated into the accounting curriculum.
AAOIFI formulated 3 (three) sections about the Structure of
the Islamic Accountant Professional Code of Ethics
(Kusumaningtyas & Solikah, 2016), in Table 2.
[Table 2 about here.]
Comparison between the Principles of the Professional Code
of Ethics issued by IAPI and AAOIFI, show clearly that the
ethical principles of the accounting profession from IAPI
does not involve aspects of faith, meaning adherence to
values religion (explicitly) by referring to the Al-Quran and
As-Sunnah (Ilyas et al., 2019). The Public Accountant
Professional Code of Ethics issued by IAPI is still
conventional (Hossain et al., 2007). Demands to always carry
out muamalah or good relations between people by referring
to the Al-Quran and As-Sunnah only to gain the pleasure of
Allah SWT to live be more blessing and useful for many
people. There are several pieces of verses from Al-Qur’an
and the Hadith of the Prophet Muhammad SAW that convey
to all mankind to have good manners, among them,
ُ ‫ۡد ُع ِاٰل ى َس ِبۡي ِل َرِّبَك ِباۡل ِح ۡك َم ِة َو اۡل َم ۡو ِع َظِة اۡل َحَس َنِة‌ َو َج اِد ۡل ُهۡم ِباَّلِتۡى ِهَى َاۡح َس ُنؕ‌ ِاَّن َرَّبَك‬
‫ُهَو َاۡع َلُم ِبَم ۡن َض َّل َع ۡن َس ِبۡي ِلٖه‌ َو ُهَو َاۡع َلُم ِباۡل ُم ۡه َتِد ۡي َن‬
“Invite to the way of your Lord with wisdom and good
instruction, and argue with them in a way that is best. Indeed,
your Lord is most knowing of who has strayed from His way,
and He is most knowing of who is [rightly] guided.” (QS An-
Nahl [16]:125)
‫ۤا‬
‫َو َم َاَص اَبُك ۡم ِّم ۡن ُّمِص ۡي َبٍة َفِبَم ا َك َسَبۡت َاۡي ِد ۡي ُك ۡم َو َيۡع ُفۡو ا َع ۡن َك ِثۡي ٍر‬
“And whatever strikes you of disaster - it is for what your
hands have earned; but He pardons much.” (QS. Asy Syura:
30)
َ‫اَن الَّنِبُّي َص َّلى ُهَّللا َع َلْيِه َو َس َّلَم َأْح َسَن الَّناِس ُخ ُلًقا‬
“Allah's Messenger (‫ )ﷺ‬was the best amongst people in
disposition and behavior.” (HR Al-Bukhari (no.6035, 6203)
dan Muslim (no.215, 2310))
“I heard the Messenger of Allah as saying: He who amongst
you sees something abominable should modify it with the help
of his hand; and if he has not strength enough to do it, then
he should do it with his tongue, and if he has not strength
enough to do it, (even) then he should (abhor it) from his
heart, and that is the least of faith.” (HR. Muslim no. 49)
Reviewing from the perspective of the fundamental
guidelines of Muslims, the professional code of ethics AP
reflects the ethics of Amar Ma'ruf Nahi Munkar. This means
that the code of ethics is prepared by purpose as a guideline
for AP in carrying out its professional activities. Besides that,
direct AP to provide an assessment of the quality of the
entity's financial statements properly and avoid bad things
that can harm the public. Hadith History of Muslim no. 49
represents that the auditor has the power and authority to
evaluate or assess the quality of the entity's financial
statements. If the AP finds a material misstatement or
irregularity in entity's financial statements, the AP is required
to disclose them without being affected by there is gratuity.
This is because the AP is responsible for delivering opinion
on the consolidated financial statements of an entity. This
opinion is one important considerations for investors,
creditors and other interested parties make investment
decisions, provide capital loans, and so on.
This spirit of to act ethically is a hallmark of the ethical code
of Islamic accountants prioritizing compliance with Islamic
law, so that financial reporting is more oriented towards the
social welfare of society rather than profit worldly (Ahmad et
al., 2017). In short, Islamic ethical principles and values
conform and profitable for the accounting profession and all
stakeholders to have an impact on prosperity and blessings in
business.
This research hopes to provide insights to add the principle of
faith and adherence to Islamic religious values that are
guided by Al-Quran and As-Sunnah on the draft Accountant
Professional Code of Ethics for Accountants in work is also
assessed as a form of their worship to Allah SWT and save
them in this world and the hereafter. Besides adding the
principles of Islamic values, there are also factors driving
success the implementation of these principles is the
existence of character education instilled in each individual
public accountant and prospective public accountant.
Introducing Islamic religious values based on the
interpretation of Al-Qur’an and study of the Hadith of the
Prophet Muhammad is also very necessary. This introduction
can be done through routine activities to participate in studies
Islamic, holding seminars, workshops, or conferences that
discuss interrelationships between the professional code of
ethics, religious values and the quality of AP performance,
and always updating knowledge related to Islamic law based
on the Al-Quran and As-Sunnah. Because it is undeniable, the
age of every human being does not know except Allah SWT.
So, as creatures who believe and fear Allah SWT must
always prepare themselves with good deeds as savings saving
reward to return to Allah SWT.
CONCLUSION
Several cases involving AP and KAP Big 4 in Indonesia,
indicating that the level of competence and track record is
high does not guarantee AP's compliance with the code of
ethics of the profession while conducting audit and provide
an opinion on the financial statements of an entity. Therefore,
it is necessary to internalize Islamic religious values into the
code of ethics of the AP profession and the commitment of
AP in implementing these values while carrying out their
professional activities. One attempt designing an AP code of
ethics based on Islamic law referring to Accounting and
Auditing Organization of Islamic Financial Institutions
(AAOIFI). The AP professional code of ethics that is based
on Islamic values is expected to be able to motivating AP to
act ethically and professionally out of fear of Allah SWT. In
addition, as a religious belief that work can be worth worship
value as well as an atonement for sins. This research hopes
to provide insights to the authors AP professional code of
ethics to consider the principles of faith and compliance
towards Islamic religious values that are guided by the Al-
Quran and As-Sunnah internalized in the draft Code of Ethics
for the Public Accountant Profession. Success
implementation of these principles is driven by education
Islamic character (through academic or non-academic
activities) that is instilled in each individual AP and
prospective AP. Academic can be realized through Islamic
accountant professional ethics education that is integrated
with curriculum standards accountancy. On the other hand,
non-academic can be done by organizing several activities to
develop knowledge about Islamic law. Such activities can
include interpretations of Al-Qur’an and studies of the
Prophet's Hadith Muhammad SAW regularly.
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Eva Lusiana
TABEL 1 / Basic Principles of IAPI Ethics 2020
No. Basic Principles
1 Integrity
2 Objectivity
3 Competency & Precautions
Professional
4 Confidentiality
5 Behavior Professional
Source: IAPI (2020)
The Code of Ethics for Public Accountant in Perspective of Islamic Fundamental
Guidelines
Explanation
Every the auditor must be honest and straightforward in carrying out all
professional and business relationships in order to maintain a good name of their
profession.
Each auditor is prohibited from compromising professional judgment or business,
because of bias, conflict of interest, or influence that could impair the
independence of the auditor in giving an opinion.
An auditor must pay attention and maintain professional knowledge and expertise
so that the auditor provides competent professional services in accordance with
auditing professional and technical standards.
An auditor is obliged to maintain the confidentiality of his client's information
from various audit activities, except in liability circumstances of legal or
professional obligations bound to the auditor.
Behavior professional means an auditor in carrying out duties must comply with
applicable laws and regulations and avoid unethical actions that could impact the
reputation of the public accounting profession.
 Eva Lusiana The Code of Ethics for Public Accountant in Perspective of Islamic Fundamental
Guidelines

TABEL 2 / Structure of the AAOIFI Islamic Accountant Professional Code of Ethics

Description Sub Section Explanation
First: Foundation Principle Integrity AP must be honest, courageous, wise, and responsible for
sharia (legal basis maintaining the reputation of the profession and building public
of the code of trust in AP.
ethics)
Principle of Khalifah AP must pay attention to Allah's commands and prohibitions SWT
because humans will be held accountable to Allah SWT regarding
how he allocating the wealth given by Allah SWT to her.
Principle of Sincerity AP Works also to seek pleasure Allah SWT, not just focusing on
(sincerity) seeking name for personal gain. Work is worship, meaning when
the work is done with a good way it will be worth worship in front
of Allah SWT in addition to professional duties that have
dimensions.
Truth and work independently AP should try to find and emphasizes truth and perfection their
perfect professional activities as well as possible as much as possible.
Allah SWT see behavior every AP must believe that Allah SWT and Angels Raqib & Atid always
time person supervise every behavior, human actions and speech. Application
of this principle as an AP controller so you don't get carried away
with bribes or the like as well as pressure arising from his
professional environment.
Man responsible answer AP must believe that every behavior, action, and his words will be
before God accounted for to Allah SWT in the hereafter on the Day of
Judgment arrive. Therefore, AP should avoid things that are hated
by Allah SWT.
Second part and Trustworthiness AP must behave with high integrity (honest and straightforward) in
third: Principles carrying out his profession to serve public, so it can be trusted in
Accountant carrying out their work.
Professional Ethics
Legitimacy AP must guarantee authenticity regarding various matters related to
& set rules ethical
the execution of his work in accordance with sharia law and
behavior for
regulations.
accountant.
Objectivity AP must be independent, impartial to anyone, free from various
internal conflicts of interest in facts and giving opinions.
Professional competence and AP must have professional competence with task-appropriate
diligent knowledge and training according to their duties and profession.
Faith driven conduct AP is required to behave in a firm manner based on values Islam is
guided by the Al-Quran and As-Sunnah consistently.
Professional conduct and AP must comply with accounting and auditing standards set by
AAOIFI.
Source: AAOIFI