8 Basic Principles of Professional Ethics in Accounting

financialtreat – will explain the 8 Basic Principles of Professional Ethics in Accounting that you will get in the following article. Let’s look at this article carefully!

Accountants who become one of the most important professions in the economic world must understand the code of ethics to maintain the quality and trust of service users. The code of ethics of the accounting profession is contained in the principles of accounting professional ethics that regulate rules and norms in the professional sphere.

8 Basic Principles of Professional Ethics in Accounting

When an accountant does not apply any of the eight basic ethics of the profession. Then He will get a skewed view from other accountants. In fact, it can cause the quality of service and trust of service users will decrease. Therefore, an accountant must understand and apply 8 basic principles of professional ethics in the field of accounting. Here’s the explanation.

Principles of Accounting Professional Ethics

The Accounting profession ethics is a science that discusses the behavior or good and bad deeds of humans to the extent that the human mind can understand the work that requires training and mastery of special knowledge as an accountant.

As already mentioned above, this ethic governs how an accountant does his job. Without a code of conduct, an accountant can be dismissed immediately. In the ethical principles of the accounting profession, scandals that conflict with the code of ethics are a big problem.

That is why the Indonesian Accounting Association (IAI) issued a code of ethics that must be adhered to by every accountant. There are eight basic principles of accounting professional ethics that must be understood and applied by every accountant who carries out his work.

Functions and Objectives of Professional Ethics Principles in the Field of Accounting

A person with the profession of accountant or auditor must have a good code of ethics and principles. The profession they live in is very heavy on its responsibilities. The results of their work are needed by the users of accounting information and other public interests to make decisions in business. Some of the ethical functions of the accounting profession are:

  • Provide reports and present the correct data about the company.
  • Assisting law enforcement.
  • Prevent accounting fraud.
  • Teach about moral responsibilities and obligations to accountants and auditors.
  • Recognize accounting issues related to ethics.

Code of Ethics of Accountants in the Accounting Profession

The Principles of Professional Ethics of Accountants in the Code of Ethics of the Indonesian Association of Accountants state the profession’s recognition of its responsibilities to the public, users of accountant services, and colleagues.

This principle guides members in fulfilling their professional responsibilities and is the basic foundation of ethical behavior and professional conduct. This principle calls for a commitment to behave honorably, even at the sacrifice of personal gain. The principles are:

Professional Behavior

Each member must behave consistently with the reputation of a good profession and stay away from actions that could discredit the profession. The obligation to stay away from behavior that can discredit the profession must be fulfilled as an implementation of its responsibilities to the beneficiaries, third parties, other members, staff, employers, and the general public.

In an effort to market and promote themselves and their jobs, professional accountants strongly do not advocate defaming the profession. In accordance with the principles of accounting profession ethics, accountants must have an honest and trustworthy attitude as one part of ethics in the accounting profession.

Members should also always be responsible for working with fellow members to develop the accounting profession, maintain public trust and carry out the responsibility of the profession in regulating themselves. Any act that defames the profession can be severely punished and can even be lifted into the realm of law that not only leads to the revoking of the license but also the criminal law.

Code of Ethics of Accountant Professional Responsibility

An accountant in carrying out his responsibilities as a professional must always use moral and professional considerations in all activities that carry out. Members have a responsibility to their service users and a responsibility to work with fellow members to develop the accounting profession and maintain public trust.

All such efforts are need to maintain and improve the traditions of the profession. The collective efforts of all members are necessary to maintain and enhance the traditions of the profession.

Technical Standards

Each activity must follow relevant technical standards and professional standards base on the principles of professional ethics. In accordance with his expertise and with caution, the accountant is oblige to carry out the assignment of the service recipient. As long as the assignment is in line with the principles of integrity and objectivity.

Technical standards and professional standards that must be adhere to by members are the ethical standards of the accounting profession issue by the Indonesian Association of Accountants, the International Federation of Accountants, regulatory bodies, and relevant laws and regulations.

Public Interest

Members of professional accountants are oblige to act in the framework of service to the public, respect public trust and show professionalism. One part of the principles of professional ethics in accounting is the acceptance of responsibility to the public. The profession of accountant also plays an important role in society.

The public meaning of the accounting profession includes clients, governments, lenders and employees. investors, the business world, and parties that depend on the integrity and objectivity of accountants in maintaining the running of business functions in an orderly manner. therefore, a great accountant should always act in accordance with the corridors of public service to maintain their trust.

In addition, actually the so-call “public” has a fairly wide scope. That is, as long as the party depends on the objectivity. Then the integrity of the accountant in maintaining the running of business functions in an orderly manner.

This dependence gives rise to the accountant’s responsibility to the public interest. The public interest is define as the interests of society and the institutions that members serve as a whole. This dependence causes the attitude and behavior of accountants in providing their services to affect the economic welfare of society and the state.


to be able maintain and enhance public trust. Must be each member must fulfill his or her professional responsibilities with the highest possible integrity. So Integrity requires a member to be honest and forthright without having to sacrifice the secrets of the beneficiary.

Public service and trust should not be defeate by personal gain. Integrity can accept unintentional mistakes and honest dissent, but it does not accept cheating or the omission of principles. Therefore, integrity is one of the most important ethical principles of the accounting profession that must be own by accountants.

Accountant Confidentiality Code of Ethics

Considering that accountants are professionals that are directly relate to financial and accounting data, it should be able to hold the principle of confidentiality ethics. In addition, members may not use or disclose such information without consent, unless there is a professional or legal right or obligation to disclose it.

The public interest and profession demand that professional standards relating to confidentiality be define. Then It’s that there are guidelines regarding the nature and extent of confidentiality obligations. And regarding the various circumstances in which information obtain during professional service can or needs to be disclose.

Members have an obligation to respect the confidentiality of information about clients or employers obtain through the professional services they provide. Confidentiality obligations continue even after the relationship between members and clients or service providers has end.

The ethical principle of the confidentiality profession requires every accountant not to do the following.

Disclose confidential information that excludes it from professional relationships and business relationships. Because It’s to parties outside the accounting firm or organization where the accountant works without giving adequate and specific authority. Unless it has the legal or professional right and obligation to disclose such confidentiality.

Use confidential information for personal or third-party gain. Information is obtained both through professional relationships and business relationships.


Each member shall maintain his objectivity and be free from conflicts of interest in the fulfillment of his professional obligations. Objectivity is a quality that provides value for the services that members provide. So The principle of objectivity requires members to be fair, impartial, intellectually honest, and unprejudiced. Last free from conflicts of interest or under the influence of others.

Read More Financial Management:

Professional Competence and Prudence

Competence is one of the guarantors of the quality and quality of service of a professional in the field of services. The principles of professional ethics of competence and professional prudence require each member of the accountant to:

  • Maintain the professional knowledge and expertise needed to guarantee the employer (the client receives professional and competent services.
  • Act diligently and carefully according to the technical and professional that apply when providing professional services.
  • Professional ethics in the field of accounting urgently needs to be paid attention to by every accountant to avoid things that do not want. This does fulfill his duties and responsibilities as a professional accountant.
  • Each member must carry out his professional services with care, competence, and perseverance. In addition, members also have an obligation to maintain professional knowledge and skills at the require level.

So This is to ensure that clients or employers benefit from the most up-to-date professional services and techniques. Therefore, this condition means that members have an obligation to carry out professional services as well as possible in accordance with their abilities.

By understanding the principles of the accounting profession code of ethics well, the accountant should be able to work optimally. One of them is by making detaile financial statements. Good luck!

Leave a Comment