Principles of professional ethics Ethics
according to IFAC, ACIPA, IAI
According to IFAC
1. Integrity
A
professional accountant must be firm and honest in all his involvement with
professional and business relations.
2. Objectivity
A
professional accountant may not allow prejudices, conflicts of interest or
excessive influence of others to exclude professional or business judgments.
3. Professional
competence and sincerity
A
professional accountant must act diligently and comply with the applicable
technical and professional standards for providing professional services.
4. Confidentiality
A
professional accountant must respect the confidentiality of information
obtained as a result of business relationships and business professionals will
not disclose such information to third parties without a proper and specific
authority unless there is a legal or professional right or obligation to
publish.
5. Professional
behavior
A
professional accountant must be obedient to relevant laws and regulations and
must avoid actions that may bring the profession into disrepute.
According to AICPA
1. Responsibility
In performing their responsibilities as
professionals, members apply sensitive professional and moral judgments in all
their activities.
2. General
interest
Members must accept their duty to act in a way that
serves the public interest, respect for public trust, and show commitment to
professionalism.
3. Integrity
In order to maintain and expand the public's trust,
members must perform all professional responsibilities with the highest
integrity.
4. Objectivity
and independence
A member must remain objective and free from
conflicts of interest in the performance of professional responsibilities, and
must be independent in the presentation of facts and beliefs in the provision
of audit services and other attestation services.
5. Care
A member must meet the technical and ethical
standards of the profession, continually strive to improve competence and
service in the performance of the professional responsibilities with the best
membership.
6. Nature
and service coverage
A member in public practice must comply with the
Principles of the Professional Code when determining the scope and nature of
the services to be provided.
According to IAI
1. Professional
responsibility
In the principle of professional
responsibility, each member is obliged to use moral and professional
considerations for each activity.
2. Public
interest
Each member is obliged to always act in
the context of public service, respect for the trust of the public and to
demonstrate a commitment to professionalism.
3. Integrity
Integrity is a unit that underlies the
emergence of professional recognition. Integrity is a quality that underlies
the trust of the public and is a norm for members when testing all decisions
that it makes.
4. Objectivity
The principle of objectivity requires
members to be fair, impartial, honest, intellectual, unbiased or biased and
free from conflicts of interests or under the influence of others.
5. Confidentiality
Each member respects the confidentiality
of information obtained during the professional service and will not use or
disclose such information without permission.
6. Professional
behavior
The obligation to avoid acts or
behaviors that can reduce the level of the profession is fulfilled by the
member as the realization of his responsibilities towards the recipients of
services, third parties, other members, personnel, employers and the general
public.
7. Technical
standards
Technical standards and professional
standards that members must adhere to are the standards set by the IAI, the
International Federation of Accountants, regulatory authorities and relevant
legislation.
Understanding,
Elements and Examples of Accounting Systems
Accounting System
An accounting system is a method and procedure for collecting, clarifying, summarizing and reporting business (operational) and financial information of a company. Warren, Reeve, Fees (2005: 234)
The accounting system is a form, record and report that is coordinated in such a way that it can be used to provide the information that management needs. Baridwan (2000: 6)
An accounting system is a method and procedure for collecting, clarifying, summarizing and reporting business (operational) and financial information of a company. Warren, Reeve, Fees (2005: 234)
The accounting system is a form, record and report that is coordinated in such a way that it can be used to provide the information that management needs. Baridwan (2000: 6)
Accounting system elements
Generally, an
accounting system has 5 (five) key elements, that is to say.
1. Forms
A
form is a document that is used to record / record a transaction. In the form
there are data transactions that can be used as a basis for the recording.
2. Journal
Journal
is an accounting system used to record similar transactions, to group and to
summarize other financial data. The results of the data summaries are then
posted to the respective accounts in the general ledger. Commonly used journals
are as follows:
a.
Journal of Cash Receipts
b.
Journal of Cash expenses
c.
Purchase diary
d.
Sales journal
e.
General diary
3. General
Ledger
The
general ledger consists of a set of accounts that serve to summarize the
financial data previously recorded in the journal. The general ledger account
is also considered as a place for the classification of financial data for the
presentation of financial statements.
4. Subsidized
ledger
The
help book contains help calculations for detailing financial data, such as
grouping the types of transactions that occur in one company.
5. Reports
The
report is the final result of the accounting process, in the form of a balance
sheet, profit and loss account, capital change report, marketing costs report,
production cost report, sales report costs, list of debts, stock balance list.
Examples of accounting systems
1.
Management
Accounting
The
purpose of management accounting is to provide accounting information to
managers with a view to planning, managing and managing business activities.
2.
Stock Accounting
Stock
accounting systems are used to plan and track inventory levels and related
inventory activities. A common inventory system is the
tracking of barcodes, where each item is marked with a barcode item.
3.
Non-profit Accounting
It
is an accounting system for non-profit organizations with specific
characteristics of reporting obligations. For example
about the fund tracking system, so it is known that donations have been
channeled correctly for a certain purpose. The software
should also be able to generate reports of total donations donated by individual
donors.
