Accountant Ethics: The Role of Islamic Work Ethic as a Solution
Abstract:
Purpose: The fraud problem has occurred for a long time, followed by accounting scandals including Enron, Worldcom, Satyam, and Global Crossing. This problem is observed from the problems in accounting ethics. This study reviews the literature on ethical self-regulation in accounting from 1980-2020. The articles referred to are those published in Scopus indexed journals. Various solutions were presented from various articles such as improving regulations and professional ethics, free choice of standards used in accounting methods, perceptions of accountants to ethics education in accountants. All of these suggestions have advantages and disadvantages. This paper offers an Islamic work ethic as a solution to the ethical self-regulation of accountants that has a strong dimension with a backing on the divine aspect.
This paper offers an Islamic work ethic as a solution to the ethical self-regulation of accountants that has a strong dimension with a backing on the divine aspect.
Method: This paper uses harzing software to compile articles on ethical regulation in accountants from the 1980s to 2020. The articles referred to are those published in Scopus indexed journals. The results of tracing articles found very little data discussing regulations on accounting ethics. After the screening process, only six articles were found to be relevant (Table 1). Table 2 shows that most of the articles are conceptual papers. The rest use survey, qualitative and archival methods.
Result: So with various improvement efforts in these various fields, this paper suggests an Islamic work ethic as a solution to the problem of accountant ethics. This ethic can be universally applicable because it involves the individual's relationship with his God. All actions return to intentions that focus on the process, not only on the results.
Limitation: The limitation of this article is that it only discusses the aspect of self-regulation. Studies from different aspects will add to the contribution of ethical studies in accounting.
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Alani, F. S., and H. K. Alani. 2012. “The Role of Islamic Ethics in Accounting Environment.” IOSR Journal of Business and Management 2 (1): 26–30.
Ali, A. J. 1992. “The Islamic Work Ethic in Arabia.” The Journal of Psychology 126 (5): 507–519.
———. 2010. Islamic Perspectives on Management and Organization. Edward Elgar Publishing.
Bampton, R., and C. J. Cowton. 2013. “Taking Stock of Accounting Ethics Scholarship: A Review of the Journal Literature.” Journal of Business Ethics 114 (3): 549–563.
Bollom, W. J. 1988. “Ethics and Self-Regulation for CPAs in the U.S.A.” Journal of Business Ethics 7 ((1/2)): 55–61.
Cohen, J.R, and L.W Pant. 1991. “Beyond Bean Counting: Establishing High Ethical Standards in the Public Accounting ProfessionNo Title.” Journal of Business Ethics 10 (1): 45–56.
Darby, M. R., and E Karni. 1973. “Free Competition and the Optimal Amount of Fraud.” The Journal of Law & Economics 16 (1): 67–88.
Frankel, M. S. 1989. “Professional Codes: Why, How, and with What Impact.” Journal of Business Ethics 8: 109–15.
Jones, J. C, and G Spraakman. 2010. “A Case of Academic Misconduct: Does Self-Interest Rule?” CAAA Annual Conference.
Juliyanti, W., & Wibowo, Y. K. (2021). Literature review: implementation of Musharakah Mutanaqisah partnership over the world. Bukhori: Kajian Ekonomi dan Keuangan Islam, 1(1), 1-10.
Leonard, V. M, C. H Bélanger, and L. J Wardley. 2016. “Examining the Ethical Behavior of Ontario Chartered Accountants: A Longitudinal Review of the Disciplinary Process.” Examining the Ethical Behavior of Ontario Chartered Accountants: A Longitudinal Review of the Disciplinary Process. 15 (3): 169–99.
Mele´, D, J. M Rosanas, and J Fontrodona. 2016. “Ethics in Finance and Accounting: Editorial Introduction.” Journal of Business Ethics 140: 609–13.
Mosso, D. 2003. “A Long Fall From Grace: How Accountants Frittered Away Their Franchise.” Research in Accounting Regulation 16: 259–264.
Neuman, E. J. 2017. “The Impact of The Enron Accounting Scandal on Impressions of Managerial Control.” In Academy of Management Proceedings. Vol. 2005. https://journals.aom.org/doi/abs/10.5465/ambpp.2005.18783289.
Pearson, M. A. 1987. “Auditor Independence Deficiencies & Alleged Audit Failures.” Journal of Business Ethics 6: 281–287.
Petra, S, and A. C Spieler. 2020. “Accounting Scandals: Enron, Worldcom, and Global Crossing.” In Baker, H.K., Purda-Heeler, L. and Saadi, S. (Ed.) Corporate Fraud Exposed, 343–360. Emerald Publishing Limited. https://doi.org/https://doi.org/10.1108/978-1-78973-417-120201022.
Ponemon, L. A. 1990. “Ethical Judgments In Accounting: A Cognitive-Developmental Perspective.” Critical Perspectives on Accounting 1: 191–215.
Rafki, M., Wiliasih, R., & Irfany, M. I. (2022). Faktor-Faktor yang Memengaruhi Volume Perdagangan Sukuk Ritel SR-008 di Indonesia. Bukhori: Kajian Ekonomi dan Keuangan Islam, 1(2), 95-117.
Thompson, P. 2004. “University Governance and the Accountability of Academic Administrators.” Journal of Academic Ethics, 2 (3): 187–97.
Trilaksono, I., Komalasari, A., Tubarad, C. P. T., & Yuliansyah, Y. (2021). Pengaruh Islamic Corporate Governance dan Islamic Social Reporting terhadap Kinerja Keuangan Bank Syariah di Indonesia. Bukhori: Kajian Ekonomi dan Keuangan Islam, 1(1), 11-20.
- Alani, F. S., and H. K. Alani. 2012. “The Role of Islamic Ethics in Accounting Environment.” IOSR Journal of Business and Management 2 (1): 26–30.
- Ali, A. J. 1992. “The Islamic Work Ethic in Arabia.” The Journal of Psychology 126 (5): 507–519.
- ———. 2010. Islamic Perspectives on Management and Organization. Edward Elgar Publishing.
- Bampton, R., and C. J. Cowton. 2013. “Taking Stock of Accounting Ethics Scholarship: A Review of the Journal Literature.” Journal of Business Ethics 114 (3): 549–563.
- Bollom, W. J. 1988. “Ethics and Self-Regulation for CPAs in the U.S.A.” Journal of Business Ethics 7 ((1/2)): 55–61.
- Cohen, J.R, and L.W Pant. 1991. “Beyond Bean Counting: Establishing High Ethical Standards in the Public Accounting ProfessionNo Title.” Journal of Business Ethics 10 (1): 45–56.
- Darby, M. R., and E Karni. 1973. “Free Competition and the Optimal Amount of Fraud.” The Journal of Law & Economics 16 (1): 67–88.
- Frankel, M. S. 1989. “Professional Codes: Why, How, and with What Impact.” Journal of Business Ethics 8: 109–15.
- Jones, J. C, and G Spraakman. 2010. “A Case of Academic Misconduct: Does Self-Interest Rule?” CAAA Annual Conference.
- Juliyanti, W., & Wibowo, Y. K. (2021). Literature review: implementation of Musharakah Mutanaqisah partnership over the world. Bukhori: Kajian Ekonomi dan Keuangan Islam, 1(1), 1-10.
- Leonard, V. M, C. H Bélanger, and L. J Wardley. 2016. “Examining the Ethical Behavior of Ontario Chartered Accountants: A Longitudinal Review of the Disciplinary Process.” Examining the Ethical Behavior of Ontario Chartered Accountants: A Longitudinal Review of the Disciplinary Process. 15 (3): 169–99.
- Mele´, D, J. M Rosanas, and J Fontrodona. 2016. “Ethics in Finance and Accounting: Editorial Introduction.” Journal of Business Ethics 140: 609–13.
- Mosso, D. 2003. “A Long Fall From Grace: How Accountants Frittered Away Their Franchise.” Research in Accounting Regulation 16: 259–264.
- Neuman, E. J. 2017. “The Impact of The Enron Accounting Scandal on Impressions of Managerial Control.” In Academy of Management Proceedings. Vol. 2005. https://journals.aom.org/doi/abs/10.5465/ambpp.2005.18783289.
- Pearson, M. A. 1987. “Auditor Independence Deficiencies & Alleged Audit Failures.” Journal of Business Ethics 6: 281–287.
- Petra, S, and A. C Spieler. 2020. “Accounting Scandals: Enron, Worldcom, and Global Crossing.” In Baker, H.K., Purda-Heeler, L. and Saadi, S. (Ed.) Corporate Fraud Exposed, 343–360. Emerald Publishing Limited. https://doi.org/https://doi.org/10.1108/978-1-78973-417-120201022.
- Ponemon, L. A. 1990. “Ethical Judgments In Accounting: A Cognitive-Developmental Perspective.” Critical Perspectives on Accounting 1: 191–215.
- Rafki, M., Wiliasih, R., & Irfany, M. I. (2022). Faktor-Faktor yang Memengaruhi Volume Perdagangan Sukuk Ritel SR-008 di Indonesia. Bukhori: Kajian Ekonomi dan Keuangan Islam, 1(2), 95-117.
- Thompson, P. 2004. “University Governance and the Accountability of Academic Administrators.” Journal of Academic Ethics, 2 (3): 187–97.
- Trilaksono, I., Komalasari, A., Tubarad, C. P. T., & Yuliansyah, Y. (2021). Pengaruh Islamic Corporate Governance dan Islamic Social Reporting terhadap Kinerja Keuangan Bank Syariah di Indonesia. Bukhori: Kajian Ekonomi dan Keuangan Islam, 1(1), 11-20.
