ETHICAL ISSUES

IN ACCOUNTING

Kelompok 9:
Devi Regina Puri (1091002067)
Febrina Kurniawan (1091002055)
Karina Ayu Ditriani (1091002007)
Lolita Bani Rachmadian (1091002046)

Akuntansi – 2009
Universitas Bakrie
Prologue
 All praise and thank to the presence of God Almighty who has bestowed His mercy
and guidance to His servant so that we can finish this paper with great ease.
This paper is a part of my Business Ethics presentation task about “Ethical Issues in
Accounting”. This paper was conducted for the purpose of providing information to those
unaware and unfamiliar with the concepts and issues surrounding accounting ethics. It should
offer resources for further research and exploration as it pertains to the readers needs. For
those who are already familiar with the topic, this paper would probably be more like a song
(favorite or not) you can sing the words to.
We are grateful to have such an understanding and nurturing lecturer so that we are
able to complete this paper as best as we possibly could.
Finally, we wish to express our deep gratitude and appreciation for the co-operation
and for the timely support and positive contribution of all the group members and also to
those who supported us in our effort to develop this paper.

We hope that this paper could be useful under the necessary circumstances. We
realize that this paper is still far from perfect. We look forward for all critics and advices
necessary for making other papers. Thank you.

Table of Contents

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Prologue 2
Table of Contents 3
Introduction 4
Types of Accounting Profession 5
Code of Conducts 7
Case Analysis 14
Preferences 20

Introduction

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 Ethics is a code of conduct, a field of study, or a course of action, which applies to
everyday life. Professional ethics is a code of conduct that applies to the ethical action of a
profession. Recent audit failures have led some to conclude that there is unethical conduct
within the accounting profession. For a number of years, the public accounting profession has
been concerned with ethics.
Accountancy is the process of communicating financial information about a business
entity to users such as shareholders and managers. The communication is generally in the
form of financial statements that show in money terms the economic resources under the
control of management; the art lies in selecting the information that is relevant to the user and
is reliable. Accountancy is a branch of mathematical science that is useful in discovering the
causes of success and failure in business. The principles of accountancy are applied to
business entities in three divisions of practical art, named accounting, bookkeeping, and
auditing.
Accounting is defined by the American Institute of Certified Public Accountants
(AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in
terms of money, transactions and events which are, in part at least, of financial character, and
interpreting the results there of."
Accounting is thousands of years old; the earliest accounting records, which date back
more than 7,000 years, were found in the Middle East. The people of that time relied on
primitive accounting methods to record the growth of crops and herds. Accounting evolved,
improving over the years and advancing as business advanced.
Early accounts served mainly to assist the memory of the businessperson and the
audience for the account was the proprietor or record keeper alone. Cruder forms of
accounting were inadequate for the problems created by a business entity involving multiple
investors, so double-entry bookkeeping first emerged in northern Italy in the 14th century,
where trading ventures began to require more capital than a single individual was able to
invest. The development of joint stock companies created wider audiences for accounts, as
investors without firsthand knowledge of their operations relied on accounts to provide the
requisite information. This development resulted in a split of accounting systems for internal
(i.e. management accounting) and external (i.e. financial accounting) purposes, and
subsequently also in accounting and disclosure regulations and a growing need for
independent attestation of external accounts by auditors. Today, accounting is called "the

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language of business" because it is the vehicle for reporting financial information about a
business entity to many different groups of people.

Types of Accounting Profession

There are several four types of accounting profession:

1. Management Accountant (Managerial Accounting)
Management accounting or managerial accounting is concerned with the provisions
and use of accounting information to managers within organizations, to provide them with
the basis to make informed business decisions that will allow them to be better equipped in
their management and control functions.
In contrast to financial accountancy information, management accounting information is:
 designed and intended for use by managers within the organization, instead of
being intended for use by shareholders, creditors, and public regulators;
 usually confidential and used by management, instead of publicly reported;
 forward-looking, instead of historical;
 computed by reference to the needs of managers, often using management
information systems, instead of by reference to general financial accounting
standards.
The title Certified Management Accountant (CMA) is a professional designation
awarded by various professional bodies around the world. In Indonesia, Institut Akuntan
Manajemen Indonesia (IAMI) does the test competency for a career as an accountant to
management accountants.

2. Financial Accountant
Accounting that provides information to people outside the business entity is called
financial accounting and provides information to present and potential shareholders,
creditors such as banks or vendors, financial analysts, economists, and government
agencies. Because these users have different needs, the presentation of financial accounts
is very structured and subject to many more rules than management accounting. The body
of rules that governs financial accounting is called Generally Accepted Accounting
Principles or GAAP.

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 Certified Public Accountant (CPA) is the statutory title of qualified accountants in the
United States who have passed the Uniform Certified Public Accountant Examination and
have met additional state education and experience requirements for certification as a
CPA. Individuals who have passed the Exam but have not either accomplished the
required on-the-job experience or have previously met it but in the meantime have lapsed
their continuing professional education are, in many states, permitted the designation
"CPA Inactive" or an equivalent phrase. In most U.S. states, only CPAs who are licensed
are able to provide to the public attestation (including auditing) opinions on financial
statements.

3. Public Accountant
Public Accountant is someone who has obtained permission from the finance minister
to provide assurance services and other services. Public accountant is someone who is
independent and not tied up to a company. He or she must follow continous professional
education. In Indonesia, an organization for public accountants is called Institut Akuntan
Publik Indonesia (IAPI).

4. Auditor

The auditor is someone who has certain qualifications in conducting an audit of

financial statements and activities of a company or organization. Auditors can be divided
into three types, namely:

 Government auditors are auditors assigned to conduct an audit of the finances of

government agencies. In Indonesia, government auditors can be divided into two
namely:
o Government External Auditor conducted by the State Audit Agency (BPK).
BPK is an entity not subject to the government, which is expected to be
independent .
o Government Internal Auditors, or better known as the Functional Control of
Government Officials carried out by the Financial and Development
Supervisory Agency (BPK), the Inspectorate General of the Department / non,
and the Regional Monitoring Agency .

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  Internal Auditors is an auditor who works at a company and therefore has status as an
employee of the company. Its primary task is intended to assist the management
company where he works.

 Independent Auditor (Public Accountant) is to perform auditing functions for

financial statements issued by the company. Auditing is done on public companies, ie
companies that go public, companies large and small companies and organizations
that do not aim for profit. The practice of public accounting should be done through a
Public Accounting Firm (KAP).

Code Of Conducts

Despite increased governmental regulation and oversight of accounting practices, the

presence of ethical codes of conduct in professional accounting associations, and increasingly
common integration of ethics conversations in the graduate business school accounting
curriculum, poor ethical decision making in financial accounting still exists and is typically
cited as evidence of unchecked greed in business.

Ethics regulation within the public accounting profession is undertaken by State

Boards of Accountancy. However, several other organizations are concerned with public
accountants’ ethics. The Financial Accounting Standards Board has an effect, since CPAs
must follow its Statements. The national organization for CPAs, the American Institute of
Certified Public Accountants (AICPA), is involved through its Auditing Standards Board.
The U.S. Securities and Exchange Commission, in its role of regulator of the federal
securities laws, takes a great deal of interest in CPA ethics.

MANAGEMENT AND FINANCIAL ACCOUNTANT

Standards of Ethical Conduct For Practitioners of Management Accounting and

Financial Accounting

Practitioners of management accounting and financial accounting have an obligation

to the public, their profession, the organization they serve, and themselves, to maintain the
highest standards of ethical conduct. In recognition of this obligation, the Institute of
Management Accountants has promulgated the following standards of ethical conduct for
practitioners of management accounting and financial management. Adherence to these

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standards, both domestically and internationally, is integral to achieving the Objectives of
Management Accounting. Practitioners of management accounting and financial management
shall not commit acts contrary to these standards nor shall they condone the commission of
such acts by others within their organizations.

Competence

Practitioners of management accounting and financial accounting have a responsibility to:

 Maintain an appropriate level of professional competence by ongoing development of

their knowledge and skills.
 Perform their professional duties in accordance with relevant laws, regulations, and
technical standards.
 Prepare complete and clear reports and recommendations after appropriate analyses of
relevant and reliable information.

Confidentiality

Practitioners of management accounting and financial accounting have a responsibility to:

 Refrain from disclosing confidential information acquired in the course of their work
except when authorized, unless legally obligated to do so.
 Inform subordinates as appropriate regarding the confidentiality of information
acquired in the course of their work and monitor their activities to assure the
maintenance of that confidentiality.
 Refrain from using or appearing to use confidential information acquired in the course
of their work for unethical or illegal advantage either personally or through third
parties.

Integrity

Practitioners of management accounting and financial accounting have a responsibility to:

 Avoid actual or apparent conflicts of interest and advise all appropriate parties of any
potential conflict.

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  Refrain from engaging in any activity that would prejudice their ability to carry out
their duties ethically.
 Refuse any gift, favor, or hospitality that would influence or would appear to
influence their actions.
 Refrain from either actively or passively subverting the attainment of the
organization's legitimate and ethical objectives.
 Recognize and communicate professional limitations or other constraints that would
preclude responsible judgement or successful performance of an activity.
 Communicate unfavorable as well as favorable information and professional
judgements or opinions.
 Refrain from engaging in or supporting any activity that would discredit the
profession.

Objectivity

Practitioners of management accounting and financial accounting have a responsibility to:

 Communicate information fairly and objectively.

 Disclose fully all relevant information that could reasonably be expected to influence
an intended user's understanding of the reports, comments, and recommendations
presented.

Resolution of Ethical Conflict

In applying the standards of ethical conduct, practitioners of management accounting

and financial accounting may encounter problems in identifying unethical behavior or in
resolving an ethical conflict. When faced with significant ethical issues, practitioners of
management accounting and financial accounting should follow the established policies of
the organization bearing on the resolution of such conflict. If these policies do not resolve the
ethical conflict, such practitioners should consider the following courses of action.

 Discuss such problems with the immediate superior except when it appears that the
superior is involved, in which case the problem should be presented initially to the
next higher managerial level. If a satisfactory resolution cannot be achieved when the
problem is initially presented, submit the issues to the next higher managerial level. If

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 the immediate superior is the chief executive officer, or equivalent, the acceptable
reviewing authority may be a group such as the audit committee, executive
committee, board of directors, board of trustees, or owners. Contact with levels above
the immediate superior should be initiated only with the superior's knowledge,
assuming the superior is not involved. Except where legally prescribed,
communication of such problems to authorities or individuals not employed or
engaged by the organization is not considered appropriate.
 Clarify relevant ethical issues by confidential discussion with an objective advisor
(e.g., IMA Ethics Counseling service) to obtain a better understanding of possible
courses of action. - Consult your own attorney as to legal obligations and rights
concerning the ethical conflict.
 If the ethical conflict still exits after exhausting all levels of internal review, there may
be no other recourse on significant matters than to resign from the organization and to
submit an informative memorandum to an appropriate representative of the
organization. After resignation, depending on the nature of the ethical conflict, it may
also be appropriate to notify other parties.

AUDITOR

Concept, Background and Purpose of the Code of Ethics

A Code of Ethics is a comprehensive statement of the values and principles which

should guide the daily work of auditors. A code of ethics for auditors in the public sector
should consider the ethical requirements of civil servants in general and the particular
requirements of auditors, including the latter’s professional obligations.

Trust, Confidence and Credibility

Auditors should conduct themselves in a manner which promotes co-operation and

good relations between auditors and within the profession. The support of the profession by
its members and their co-operation with one another are essential elements of professional
character. The public confidence and respect which an auditor enjoys is largely the result of
the cumulative accomplishments of all auditors, past and present. It is therefore in the interest
of auditors, as well as that of the general public, that the auditor deals withfellow auditors in a
fair and balanced way.

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  Integrity
Integrity is the core value of a Code of Ethics. Auditors have a duty to adhere to high
standards of behaviour (e.g. honesty and candidness) in the course of their work and in their
relationships with the staff of audited entities. In order to sustain public confidence, the
conduct of auditors should be above suspicion and reproach.

 Independence, Objectivity and Impartiality

Independence from the audited entity and other outside interest groups is
indispensable for auditors. This implies that auditors should behave in a way that increases,
or in no way diminishes, their independence.
Auditors should strive not only to be independent of audited entities and other
interested groups, but also to be objective in dealing with the issues and topics under review.
It is essential that auditors are independent and impartial, not only in fact but also in
appearance.
In all matters relating to the audit work, the independence of auditors should not be
impaired by personal or external interests. Independence may be impaired, for example, by
external pressure or influence on auditors; prejudices held by auditors about individuals,
audited entities, projects or programmes; recent previous employment with the audited entity;
or personal or financial dealings which might cause conflicts of loyalties or of interests.
Auditors have an obligation to refrain from becoming involved in all matters in which they
have a vested interest.
There is a need for objectivity and impartiality in all work conducted by auditors,
particularly in their reports, which should be accurate and objective. Conclusions in opinions
and reports should, therefore, be based exclusively on evidence obtained and assembled in
accordance with the SAI’s auditing standards.
Auditors should make use of information brought forward by the audited entity and other
parties. This information is to be taken into account in the opinions expressed by the auditors
in an impartial way. The auditor should also gather information about the views of the
audited entity and other parties. However, the auditors’ own conclusions should not be
affected by such views.

 Competence

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 Auditors have a duty to conduct themselves in a professional manner at all times and
to apply high professional standards in carrying out their work to enable them to perform
their duties competently and with impartiality.
Auditors should know and follow applicable auditing, accounting, and financial
management standards, policies, procedures and practices.

Conflicts of interest

When auditors are permitted to provide advice or services other than audit to an
audited entity, care should be taken that these services do not lead to a conflict of interest. In
particular, auditors should ensure that such advice or services do not include management
responsibilities or powers, which must remain firmly with the management of the audited
entity.
Auditors should protect their independence and avoid any possible conflict of interest
by refusing gifts or gratuities which could influence or be perceived as influencing their
independence and integrity.

AUDITORS’ RESPONSIBILITY :

The Auditing Practice Committee, which is the pioneer of the Auditing Practices Board,
in 1980, gave a summary of auditors’ responsibility, which are:
1. Planning, Control and Recording. Auditors need to plan, control and record their jobs.
2. Accounting System. Auditors need to know with certainty the system for recording
and processing transactions and assess the adequacy as a basis for preparing the
financial statements.
3. Audit Evidence. The auditor shall obtain audit evidence that is relevant and reliable to
provide a rational conclusion.
4. Internal Control. If the auditors wished to place reliance on internal controls, they
should ensure and evaluate controls and perform compliance tests.
5. Review of Relevant Financial Statements. Auditors carry out review of relevant
financial statements as necessary, in conjunction with the conclusions drawn by other
audit evidence obtained, and to provide a rational basis for an opinion regarding the
financial statements.

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AUDITORS’ OPINION

Munawir (1995) explained the auditors’ opinion as follows:

1. Opinions of Fair Without Conditional. This opinion can only be given when the
auditor believes that based on the audit in accordance with generally accepted
auditing standards, financial statement presentation is in accordance with Accounting
Principles General Unacceptable (GAAP), no change in the application of accounting
principles (consistently) and contain explanations or sufficient disclosure so that no
mislead users, and there are no exceptional uncertainty (material).
2. Opinions of Fair With Exceptions. This opinion is given if auditors put the objection
or exception concerned with the fairness of financial statements, or in a state that the
financial statements as a whole is fair, without exception for certain things due to
certain factors that cause qualified opinion (one or more accounts that are not fair) .
3. Disagree opinion. It is an opinion that financial statements do not present fairly the
financial condition and results of operations as required by the General Unacceptable
Accounting Principles (GAAP). It is given by an auditor because of an exception or
qualification to the fairness of presentation of its material nature (there are many
accounts that are not fair.)
4. Rejection Giving Opinion. Refusal to give an opinion means that the audit report does
not contain the opinion of the auditor. This can be issued if: the auditor does not
believe in him/herself or doubt as to the fairness of financial statements, the auditor
only compile financial reporting and instead of doing an audit of financial statements,
the auditor is not independent of the parties is domiciled was auditing and the
incredible certainty that greatly affect the fairness of the financial statements.
5. Piece by piece opinion. Auditors can not give an opinion in bits and pieces. Audit
results will only give the conclusion that the audited financial statements as a whole.

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CASE ANALYSIS

Case 1

The management accountant, Angela, has been employed by RBSC Limited for
several years and now holds a senior position in the company.

In March 19X4, the management team identified four possible ports (in different parts
of the world) with dry-docking facilities which could carry out the overhaul of the hull.
Angela was asked to quantify each alternative, in order to determine the most cost-effective
port. The costs relevant to the decision included estimates for each port of: the cost of sailing
to the port; charter fees lost due to the ship being out of service; dry-docking fees; and repair
costs. Where possible, Angela obtained estimates from suppliers; however, a number of
assumptions had to be made about the future exchange rates and the number of days the ship
would be out of service.

At the end of the exercise, it was clear that the highest-cost port, at an estamated £7m,
would be Portsmouth. The managing director (MD), who has a financial interest in the
Portsmouth shipyard, persuaded Angela to change a number of the assumpions on which the
calculations were based in order to make Portsmouth appear to be the lowest-cost port at an
estimated £6m.

Question:

If the Board decide to go along with the managing director’s decision after the
assumptions in favor of Portsmouth, does Angela’s duty extend to trying to inform the
company’s shareholders/ auditors of her misgivings?

Answer :

As a management accountant, Angela actually has only the responsibility to provide

information to the internal parties of the company, of which will be the base for the policy
and decision making.

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 In order to decide whether a matter is ethical in a profession, code of ethics is
necessary. Code of ethics is a base for someone in doing his/her job profesionally. Code of
ethics makes people behave ethically in an organization. Ethical behavior involves choosing
the right and proper actions to do. Our behavior may be right or wrong, proper or improper,
and the decision we are making is possibly fair or not fair. IMA (Institute of Management
Accountant) anounces the statements that explain about the standard of management
accountants’ behavior, which can be used by Angela as a standard.

When a managing director force Angela to push the assumption number of

Portsmouth, it is already breach her profession ethics. Angela has to inform that concern to
the other superior internal parties, such as the board, because Angela’s actual responsibility is
aimed to the company which represented by the board of directors. In this case, Angela has
informed the board, yet the board decided to stick to the managing director’s decision. In this
situation, it all depends on Angela, whether she will agree or disagree to push the assumption
number of Portsmouth. Based on her role, Angela does not have any responsibility to inform
either the shareholder or the auditor. But ethically, Angela should inform this, because it is
concerned that the conflict of interest from the Managing Director could cause the company
a major loss. But sometimes doing the right thing could cause a heavy consequences, in this
case, Angela could lost her job. As human, we have to consider a lot of things before we
make any decision, like our personal concerns. If in this case Angela still consider her
personal concern and avoid losing her job, the best way she can do is to write a personal note
that says that she made the financial statements under pressure, and to keep the note in case
she is troubled in the future concerning this case. With the note, if later the case is being
discussed, Angela will not get such an awful punishment eventhough she is still going to be
punished because she has comitted a financial statement fraud.

If I were Angela, I would inform the matter to the shareholders, not only to protect the
shareholders’ interests, but also to protect my credibility as an accountant. The most important
is that I should not work under pressure and not work for a company that most likely
committing financial statement fraud.

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Case 2

The financial accountant, Frank, who was appointed in June 19X4, has experience of
auditing and is recently qualified. Being in relatively high-profile, high-risk business, Frank
had been pleased to be able to negotiate a salary substantially above the market rate for an
equivalent position in other sectors, together with an annual bonus based on performance.

Frank is currently preparing the financial statements for the year ended 31 December
19X4. The published, audited accounts for the year ended 31 December 19X3 included a
cumulative provision for dry-docking charges of £1m. Frank is aware that a costing exercise
has been carried out, but is unable to obtain a copy, and is being stonewalled by Angela and
the managing director. The receptionist, who opens the post, has informed him that ‘everyone
knows’ that the dry-docking charge is likely to be in region of £6m.

The managing director is putting Frank under considerable pressure to include a

cumulative provision of only £3m, and has suggested that any concerns about the likely level
of dry-docking charges need not be disclosed to the auditors. The managing director is
currently negotiating a substantial loan from the bank.

Question:

If the board take the same position as the managing director, should Frank inform the
auditors his concerns?

Answer:

The role of a Financial Accountant is to provide economic information (in the form of
financial statements) about the performance and financial adaptability of an organization to
users in the outside world.

Frank is clearly a well-paid, highly valued member of the management team.

However, he must not allow these factors, to affect his professional judgement.

Frank has a clear duty to ‘users’ of financial information, which group includes
lenders. Therefore, if the dry-docking costs would be a relevant factor in the bank’s decision

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to lend, the financial accountant should ensure that accurate information is available. As in
Case 1, the financial accountant should report his findings direct to the board, whom he
should also remind that they have a duty to ensure that the company’s audited accounts
present a ‘true and fair view’ of the company’s affairs.

Therefore, considering those facts and his intention to be professional, yes, Frank
should inform the auditors (and all users including bank as the lender of the company’s future
loan) of his concerns in the form of accurate financial statements that show the actual
condition of the company.

He has to be strict to the board that it is his job and the company’s duty to inform the
truth to the stakeholders. Besides, by reporting accurate financial statements, the company
could also avoid the possibility of unable of paying its future loan (the one the managing
director is currently negotiating with the bank).

Case 3 – (1)

After reviewing the financial statements (prepared by the financial accountant) for the
year ended 31 December 19X4, the audit manager, Clare, identified the provision of £3M for
dry-docking charges as an item carrying significant audit risk. On the investigation, the audit
team was unable to obtain documentary evidence to substantiate the provision and has also
been made aware of the rumour that the actual figure is likely to be £6M.

The managing director is refusing to discuss the subject and threatening to appoint
alternative auditors, unless the accounts are finalised before the meeting with the bank.

Question:

What if the audit partner comes to a decision which Clare believes to be unethical,
and potentially breaching the auditor’s statutory duties?

Answer :

As an ethical auditor, Clare should not follow her audit partner decision because it’s
against the code of ethics of the audits. Clare should stick with the regulation of audits.

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 The audit firm has a statutory duty to ensure that the company’s accounts give a ‘true
and fair view’ of the company’s affairs. In a situation such as this, Clare should have insisted
that documentary evidence of the dry-docking estimates be made available.

However, if this request had been denied Clare’s ethical position becomes less clear.
She clearly has a duty to the company’s shareholders but would she be fulfilling her duty by
simply passing the problem on to the audit partner. The answer to the question is probably
‘yes’. The partner is working within the same code of ethics as Clare but has greater
experience on which to make the appropriate decision and, with his partners, will have the
ultimate responsibility for signing off the accounts as presenting a ‘true and fair view’.

Just for reminder, an auditor’s role is to express independent opinion on the fairness
and reliability of the company’s financial statement and thus on the directors’ stewardship of
the owners’ funds. Under the Companies Act 1985, the auditor has 3 main duties : to report to
the members whether the financial statements give a “true and fairview” of the state of affairs
of the company; to fulfill their obligations under the Companies Acts; and to exercise
reasonable care and skill.

Case 3 - (2)

The audit partner, Mike, is a junior partner in a medium-sized firm of chartered

accountants. The audit fee from RSBC Limited represents a significant proportion of his fee
income, but a small proportion of the fee income of the partnership as a whole. Mike has also
advised RSBC Limited on the appointment of the financial accountant, and has given general
advice on various sources of finance.

The managing director and Mike eventually compromised, and agreed on a provision
of £4m for dry-docking charges. The accounts were duly signed by the partnership as
presenting a true and fair view, and were used by the company to obtain a bank loan. In
March 1995, the actual dry-docking charges amounted to £7m.

Question:

Would the partner’s position be any difference if the actual dry-docking charges
amounted to £4.2m ?

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Answer:

It seems that Mike put himself in a difficult position, even before this situation arose.
Clearly, from a personal perspective, he may be relying too heavily on the fees from one
audit client, even though the relevant provision of the professional code refers to the audit fee
income of the practice as a whole. In addition, by providing related services, other than
auditing, he has placed a further strain on his independence, or at least his apparent
independence. In relation to these matters he should consider his position for the future,
following discussions with his partners.

None of these factors should have affected Mike’s judgement in this situation.; his
duties here are both statutory and ethical. If he could not justify the relevant dry-docking
provision in the accounts, and felt the item was material, he should not have signed the
accounts, and he should, indeed, have sought the advice of his partners. In general terms, a
matter may be judged material if knowledge of it would be likely to influence the user of the
financial statements or the performance audit report. This is particularly important as his
partners will be jointly and severally liable with Mike action be taken against the firm in
relation to the inaccurate accounts.
As an auditor, Mike should should protect his own independence and integrity and
avoid any possible conflict of interest, such as keeping his own auditing fee income. Mike
should review the financial statement or RSBC Limited and ask their internal control for any
evidence related to dry-docking charges. Furthermore, if Mike found any “miscalculation”,
Mike should immediately report to Financial and Development Supervisory Agency (BPK).

According to code of conducts, if a significant conflict cannot be resolved, a

professional accountant may wish to obtain professional advice from the relevant
professional body or legal advisors, and thereby obtain guidance on ethical issues without
breaching confidentiality. For example, a professional accountant may have encountered a
fraud, the reporting of which could breach the professional accountant’s responsibility to
respect confidentiality. The professional accountant should consider obtaining legal advice to
determine whether there is a requirement to report.

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Preferences

www.wikipedia.com

www.

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