Etika Akuntansi

Oleh Ema Damanik

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Transkrip Etika Akuntansi

AK0037
ACCOUNTING ETHICS
The Nature of Accounting
and
The Chief Ethical Difficulty:
True Disclosure

ACCOUNTING PROGRAM

The Nature of Accounting
• Accounting is a technique, and its
practice is an art or craft developed to
help people monitor their economic
transactions.
• Fundamental purpose is to provide
information about the economic dealings
of a person or organization, then the
government needed the information.
• Accounting gives people a financial
picture of their affairs.

The Nature of Accounting




The accountant provides information that
can be used in a number of ways. An
organization’s managers use it to help them
plan and control the organization’s
operations.
Owners, managers, and/or legislative
bodies use it to help them appraise an
organization’s performance and make
decisions about its future. Owners,
managers, lenders, suppliers, employees,
and others use it to help to decide how
much time and/or money to devote to the
organization.

The Nature of Accounting





Government uses it to determine how much
tax the organization must pay.
Hence, the accountant’s role is to furnish
various entities that have a legitimate right
to know about an organization’s affairs with
useful information about those economic
affairs.
Thus,
accountants
issue
financial
statements that a range of constituencies –
from company management, to tax
agencies, to potential investors – need to
access.

The Nature of Accounting




Accounting practice rests on what the Financial
Accounting Standards Board (FASB) of the Financial
Accounting Foundation calls a conceptual
framework.
The conceptual framework is a coherent system of
interrelated objectives and fundamentals that is
expected to lead to consistent standards and that
prescribes the nature, function, and limits of
financial accounting and reporting. It is expected to
serve the public interest by providing structure and
direction to financial accounting and reporting to
facilitate the provision of evenhanded financial and
related information that helps promote the efficient
allocation of scarce resources in the economy and
society, including assisting capital and other
markets to function efficiently.

The Nature of Accounting
There generally are four components of
financial statements:
• balance sheet
• income statement
• statement of changes in retained
earnings
• statement of changes in cash flow

The Nature of Accounting
Balance sheet has three elements:
• assets –
the tangible and intangible
items owned by the company;
• liabilities – the organization’ s debts,
involving money or services owed to
others; and statement of changes in cash
flow;
• owners’ equity – funds provided by the
organization’s
owners
and
the
accumulated income or loss generated
over years balance sheet.

The Nature of Accounting




Assets and liabilities can be classified as either
current or noncurrent. Noncurrent assets are
noncurrent receivables and fixed assets such as
land, buildings, and long‐ term investments.
Current assets include cash, amounts
receivable, inventories, and other assets
expected to be consumed or readily converted
into cash in the next operating cycle.
The owners’
equity is divided between
common or preferred stock, paid‐in capital, and
retained earnings, where common stock is the
set dollar per share, paid‐in capital is the
premium paid for the stock (shares), and
retained earnings is the amount earned/lost in
the past and dividends distributed to owners.

The Nature of Accounting





The income statement shows net income
(profit) when revenues exceed expenses and
net loss when expenses exceed revenues.
The statement of changes in retained earnings
explains the changes in those earnings over a
reporting period: assets minus liabilities equal
paid ‐ in capital and retained earnings.
The statement of changes in financial position
identifies existing relations and reveals
operations that do or do not generate enough
funds to cover an organization’ s dividends and
capital investment requirement.

The Nature of Accounting




Preparation of these statements allows great leeway in
what to take account of and what not, as well as where to
put things in presenting the statements, opportunities
abound to paint different pictures of an organization’ s
financial affairs.
It takes little imagination to envision a manager who, for
fear of his job and wanting to impress his board, puts
pressure on the managerial accountant to “cook the
books” so that retained earnings look much more
substantial than they are. But cooking the books and
“creative accounting,” as the terms suggest, clearly have
an unethical element and are activities that must be
examined under the ethics of truth telling and disclosure.
More recently, “aggressive accounting” and “ pro‐ forma
accounting” are euphemisms, at least in some cases, for
presenting pictures of a company’s financial situation
that, while not deceptive, are less than candid.

Ethics of Disclosure




Accounting is developing information that is
going to be used. If the use of the
information is benign and the information is
truthful, no ethical problems arise. But if the
information persuades people to act in one
way or other, and their action either
benefits or harms the persons giving or
getting the information, this information
giving takes on ethical importance.
The accountant must at least meet the
disclosure requirements of governing
authorities.

The Financial Statement




The Securities and Exchange Commission
(SEC) oversees financial statements of
corporations. The financial statements are
prepared
by
the
company’s
own
accountants.
Outside accountants audit the financial
statements. (In the United States, certified
public accountants (CPAs) execute the
audits. In the United Kingdom and its
affiliates, chartered accountants perform
the audit function.) Accountants certify that
the companies’ financial statements are
complete in all material aspects and the
figures have been calculated through the
use of acceptable measurement principles.

The Financial Statement
• The most common measurement
principles are generally accepted
accounting principles. Those principles
are supervised by the Financial
Accounting Standards Board, not the
SEC, which does have the statutory
authority to set financial accounting and
reporting standards for publicly held
companies
under
the
Securities
Exchange Act of 1934. Throughout its
history, SEC’ s policy has been to rely on
the private sector to set standards.

The Financial Statement
Some of the chief concepts and techniques that
accountants utilize:
• Net income indicates the change in a company’s
wealth, during a period of time, from all sources
other than the injection or withdrawal of
investment funds.
• Transactions approach recognizes as income
only those increases in wealth (that can be
substantiated) from data pertaining to actual
transactions that have taken place with persons
outside the company. The approach does not
recognize, for example, the wealth that a
service company gains by hiring a dynamic new
employee
who
will
produce
salable
commodities.

The Financial Statement
Some of the chief concepts and techniques that accountants
utilize:
• Recognition of income. This involves revenue estimates
and expense estimates. The accountant needs to estimate
the percentage of gross sales, recognizing that for some
goods payment will never be received. Expense estimates
are based on historical cost of resources consumed. Thus,
net income equals the difference between value received
from the use of resources and the cost of the resources
consumed in the process.
• Historical cost less depreciation. To determine the value
of assets, it is necessary to depreciate some items. There
are several depreciation formulas, including but not
limited to the modified accelerated cost recovery system,
accelerated cost recovery system, straight line method,
double declining balance method, and sum of the year’ s
digits method. Which of these an accountant uses will
certainly affect the picture of the company’s financial
affairs.

The Financial Statement
Some of the chief concepts and techniques that
accountants utilize:
• Cost of goods sold formulas. To determine the cost
of goods sold, the accountant can use one of several
measurement methods: (a) FIFO (first in, first out).
In FIFO, the cost of goods sold is equal to the total
cost of various batches of goods available, starting
with the oldest batch in the inventory. (b) LIFO (last
in, first out). The opposite of FIFO, LIFO means that
the most recently purchased items are recorded as
sold first. (c) Average cost.In this method, it is
assumed that the cost of inventory is based on the
average cost of the goods available for sale during
the reporting period. Average cost is determined by
dividing the total cost of goods available for sale by
the total units available for sale.

Roles an Accountant can Fulfill
The accountant’s primary purpose is to present
a picture of an organization’s financial affairs,
accountants play many other roles.
• Auditing. The most important role is the
role of the independent accountant
(auditor). The auditor’s function is to
determine that the organization’s estimates
are based on formulas that seem reasonable
in the light of whatever evidence is available
and to see that those formulas are applied
consistently from year to year – thus, to
ensure
reasonable
application
and
consistent application.

Roles an Accountant can Fulfill
The accountant’s primary purpose is to
present a picture of an organization’s
financial affairs, accountants play many
other roles.
• Managerial accounting. A second role for
accountants is managerial accounting.
Businesses need controllers and internal
auditors.
The
accountant’s
main
responsibility is to the company, but if
the company’s board, managers, and
shareholders are at cross‐ purposes, the
accountant is conflicted.

Roles an Accountant can Fulfill
The accountant’s primary purpose is to present
a picture of an organization’s financial affairs,
accountants play many other roles.
• Tax accounting. A third role for accountants
is the determination of tax liabilities for
clients, either individual or corporate.
• Financial planning. More and more
accountants are engaging in a fourth kind of
activity, which springs from their
knowledge of tax law and financial
investment markets – financial planning.

Roles an Accountant can Fulfill
The accountant’s primary purpose is to
present a picture of an organization’s
financial affairs, accountants play many
other roles.
• Consulting. Finally, there is the area of
consulting. Because an accountant is
exceedingly familiar with the financial
status of the companies he/she serves,
the accountant can become a valuable
company
consultant
in
money
management, income distribution, and
accounting and auditing functions.

Development of Explicit
Accounting Standards and
Regulations
• While much of the general public has
become familiar with the breakdown of
the accounting ethos because of the
Enron/Andersen debacle, and with the
consequent attempt to answer these
breakdowns with the Sarbanes – Oxley
Act, there were previous attempts to
regulate and guide the accounting
profession.

The Sarbanes – Oxley Act
( SOX )
• The Sarbanes– Oxley Act was designed
primarily to regulate corporate conduct
in an attempt to promote ethical
behavior and prevent fraudulent
financial reporting.
• The legislation applies to a company’s
board of directors, audit committee, CEO,
CFO, and all other management
personnel who have influence over the
accuracy and adequacy of external
financial reports.

The Sarbanes – Oxley Act
( SOX )
• The Sarbanes– Oxley Act was designed
primarily to regulate corporate conduct
in an attempt to promote ethical
behavior and prevent fraudulent
financial reporting.
• The legislation applies to a company’s
board of directors, audit committee, CEO,
CFO, and all other management
personnel who have influence over the
accuracy and adequacy of external
financial reports.

The Sarbanes – Oxley Act
( SOX )
• The first section of the act created the
Public Company Accounting Oversight
Board (PCAOB), imposing external
independent
regulation
on
the
profession and ending self‐ regulation
under the AICPA. The PCAOB now sets
the auditing standards and conducts
inspections of CPA firms. It is also
responsible for disciplinary actions
against CPAs and for setting the ethical
tone for the profession.

The Sarbanes – Oxley Act
( SOX )


Section 301 of SOX addresses the
responsibilities of the board of directors ’
audit committee. Under SOX, audit
committees are directly responsible for
appointment and compensation of the
external auditor and must approve all non
audit services provided by the external
auditor. The audit committee members
must be independent, which means that
they may not receive fees from the company
other than for board service and may not be
affiliated in other ways.

The Sarbanes – Oxley Act
( SOX )




Section 302 affects senior management. Both the
CEO and the CFO must personally sign and certify
that the company’ s financial report does not
contain any known untrue material statements or
omit a material fact. They must admit that they are
responsible for establishing and maintaining
internal controls.
Sections 303, 304, and 306 promote ethical conduct
by the board of directors, corporate executives, and
key employees. It is unlawful for an officer or
director to take any action to influence or mislead
the external auditor. CEOs and CFOs must forfeit
bonuses and profits when earnings are restated due
to fraud. Executives are prohibited from selling
stock during blackout periods and are prevented
from receiving company loans unavailable to
outsiders.

The Sarbanes – Oxley Act
( SOX )
• Section 406 of SOX requires public
corporations to have a code of ethics for
senior executives or to state in their
annual report that they do not have such
a code and the reasons why they do not.
The SEC provides the following guidance
for the code: It should promote honest
and ethical conduct, full and fair
disclosure, compliance with the laws,
internal reporting for violations, and
accountability for adherence to the code.

The Sarbanes – Oxley Act
( SOX )




Section 201 is a direct response to the confl ict
of interest arising from the consulting and
external audit services provided to Enron by
Andersen. It prohibits most of the other
professional services that auditors historically
performed for their audit clients, and the board
of directors ’ approval is required for any
additional service the external auditor provides
that is not specifically prohibited by SOX.
In addition, PCAOB now has the authority to
determine any other impermissible services.
Section 203 mandates partner rotation; the
lead auditor must rotate off an audit every 5
years with a 5‐ y ear time‐ out. Other audit
partners must rotate after 7 years with a 2 ‐
year time ‐ out.

Recent Scandals that
Provoked More Regulation
• The WorldCom scandal immediately
followed the Enron/Andersen scandal.
WorldCom started its questionable
practices when the company did not
meet
earnings
expectations.
It’s
fraudulent accounting led to a $9 billion
restatement that was the largest in the
history of the United States. “ Accounting
managers were given promotions, raises
and made to feel responsible for a likely
collapse of the stock price if they did not
manipulate the books.

Judul: Etika Akuntansi

Oleh: Ema Damanik


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