Professional Ethics

1. Professional Ethics Chapter 3

2. APAKAH ETIKA ITU? Etika secara umum didefiniskan sebagai perangkat prisip moral atau atau nilai Masing-masing orang memiliki perangkat nilai Sekalipun tidak dapat diungkapkan secara eksplisit

3. Kebutuhan Akan Etika Prilaku beretika diperlukan oleh masyarakat agar semunya dapat berjalan secara teratur. Kebutuhan akan etika dalam cukup penting sehingga banyak diantara nilai-nilai etika dimasukan dalam undang-udang

4. Mengapa orang bertindak tidak beretika. Strandar etika seseorang berbeda dari masyarakat umum Seseorang memilih bertindak semaunya Banyak Prilaku tidak beretika yang berasal dari perilaku mementingkan dri sendiri

5. Prescribed Ethical Principles(Karateristik Prinsip Etika) Trustworthiness (Dapat Dpercaya) Fairness (Kejujuran) Respect (Saling Menghormati) Caring (Kepedulian) Responsibility (Tanggung Jawab) Citizenship (Warga Negara Yang Bertanggung Jawab)

6. Ethical Dilemma (Dilema Etika) Dilema etika adalah situasi yang dihadapi seseorang dimana keputusan mengenai prilaku yang pantas harus dibuat

7. Rationalizing Unethical Behavior(Rasionalisasi Prilaku Tak Pantas) Semua Orang mengerjakan Itu. Jika itu sah, Itu adalah Etika Kemungkinan dari Penemua dan Konsekwensi

8. Resolving Ethical Dilemmas 1. Mendpatkan Fakta Yang Relevan 2. Identifikasi isue-isue dari fakta-fakta yang ada 3. Tentukan siapa dan bagaimana orang atau kelompok yang dipengarughi oleh dilema.

9. Resolving Ethical Dilemmas 4. Identifikasi alternative yang tersedia Bagi orang yang harus memecahkan dilema 5. Idebtifikasi konsekwensi yang mungkin Timbul dari setiap alternative. 6. Putuskan Tindakan Yang tepat.

10. Kebutuhan Khusus Berprilaku Beretika Dalam profesi Masyarakat telah memberi arti khusus Pada istilah profesional Seorang Profesional diharapkan untuk Bertindak pada tingkat yang lebih Tinggi dari kebanyakan masyarakat.

11. Code of Professional Conduct (Kode Prilaku Profesional) Principles (Prinsip) Ideal standards of ethical conduct In philosophical terms (Standar ideal dari prilaku etka yang dapat dicapai dalam terminologi filosofi) Rules of Conduct (Peraturan Prilaku) Minimum standards of ethical conduct stated as specific rules (Standar Minimum Prillaku etis yang Ditetapkan sebagai peraturan khusus)

12. Code of Professional Conduct Interpretation of the rules of conduct Interpretation of the rules of conduct by the AICPA Division of Professional Ethics (Interperstasi Peraturan Prilaku. Tidak merupakan keharusan, tetapi praktisi harus memahaminya)

13. Code of Professional Conduct Ethical rulings Published explanations and answers to questions about the rules of conduct submitted to the AICPA by practitioners and others interested in ethical requirements They are not enforceable, but a practitioner must justify departure.

14. 1. Responsibilities Professionals should exercise sensitive and moral judgments in all their activities. 2. Public Interest Members should accept the obligation to act in a way that will serve and honor the public. Ethical Principles

15. 4. Objectivity and Independence Members should be objective, independent, and free of conflicts of interest. Ethical Principles 3. Integrity Members should perform all responsibilities with integrity to maintain public confidence.

16. 6. Scope and Nature of Services A member in public practice should observe the Code of Professional Conduct. Ethical Principles 5. Due Care Members should observe the profession’s standards and strive to improve competence.

17. Ideal conduct Principles Minimum Level Rules of conduct Substandard conduct Standards of Conduct

18. Learning Objective 5 Describe factors that influence auditor independence.

19. Independence Independence means taking an unbiased viewpoint in performing audit tests. Independencein fact Independencein appearance

20. Ownership interests IT and other nonaudit services Revision of SEC Auditor Independence Requirements

21. Audit committee Shopping for accounting principles Revision of SEC Auditor Independence Requirements Approval of auditors by stockholders Engagement and payment of audit fees by management

22. Learning Objective 6 Apply the AICPA Code rules and interpretations on independence and explain their importance.

23. Rule 101 – Independence A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council. Independence

24. Financial Interests Interpretations of Rule 101 prohibit covered members from owning any direct investments in audit clients. Direct financial interest Indirect financial interest Material or immaterial

25. Related FinancialInterests Issues Former practitioners Normal lending procedures Financial interest and employment of immediate and close family Joint investor or investee relationship with client Director, officer, management, or employee of a company

26. Related FinancialInterests Issues A lawsuit or intent to start a lawsuit between a CPA firm and its client is a violation of Rule 101 for the current audit. The interpretations permit a CPA firm to do both bookkeeping and auditing for the same client. The SEC prohibits performing bookkeeping and auditing services by the same CPA firm.

27. Related FinancialInterests Issues Internal auditing and extended audit services Unpaid fees

28. Learning Objective 7 Understand the requirements of other rules under the AICPA Code.

29. Rules of Conduct 101 Independence 102 Integrity and objectivity 201 General standards 202 Compliance with standards 203 Accounting principles 301 Confidential client information

30. Rules of Conduct 302 Contingent fees 501 Acts discreditable 502 Advertising and other forms of solicitation 503 Commissions and referral fees 505 Form of organization and name

31. Learning Objective 8 Describe the enforcement mechanisms for the rules of conduct.

32. Enforcement Action by AICPAProfessional Ethics Division Action by a State Board of Accountancy

33. End of Chapter 3