How to cite:
Famia Septa Dinda Alfia, Sri Trisnaningsih (2022). The Influence Of
Accountant Code Of Conduct In Detecting Fraudulent Financial
Reporting On Pt Lintas Samudra Jaya. Journal Eduvest. Vol 2(10):
2019-2024
E-ISSN:
2775-3727
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Eduvest – Journal of Universal Studies
Volume 2 Number 10, October, 2022
p- ISSN 2775-3735- e-ISSN 2775-3727
THE INFLUENCE OF ACCOUNTANT CODE OF CONDUCT IN
DETECTING FRAUDULENT FINANCIAL REPORTING ON PT LINTAS
SAMUDRA JAYA
Famia Septa Dinda Alfia
1
, Sri Trisnaningsih
2
Universitas Pembangunan Nasional “Veteran”, Indonesia
Email: 22062020002@student.upnjatim.ac.id
1
, trisna.ak@upnjatim.ac.id
2
ABSTRACT
This study aims to examine the effect of the Accountant Code
of Ethics in detecting fraudulent financial reporting on PT
Lintas Samudra Jaya. The subject of this research is PT Lintas
Samudra Jaya or LSJ Group which consists of 40 branches in
Indonesia. The research method in this study is qualitative
descriptive using clear explanations in accordance with
empirical conditions that occur in the field. Meanwhile, the
research location in this study is one of the companies engaged
in providing container and trailer expedition services, using
interview, observation and secondary data processing
techniques from the company. The conclusion of the study is
that the accountant's code of ethics has an effect on the
detection of fraudulent financial reporting on PT Lintas
Samudra Jaya. It can be proven by interviews with LSJ Group
accountants that all LSJ Group accountants are able to have an
accountant's code of ethics consisting of responsibility, public
interest, integrity, objectivity and independence, prudence,
scope and nature of service principles.
KEYWORDS
Accountant Code of Ethics, Fraudulent Financial Reporting,
PT Lintas Samudra Jaya
This work is licensed under a Creative Commons
Attribution-ShareAlike 4.0 International
INTRODUCTION
In companies, the role of accountants has the obligation to disclose and identify
fraud on financial reporting in an organization (Watung & Ilat, 2016). An accountant has
a big role in improving transparency and quality of financial information. According
Famia Septa Dinda Alfia, Sri Trisnaningsih
The Influence Of Accountant Code Of Conduct In Detecting Fraudulent
Financial Reporting On Pt Lintas Samudra Jaya
2020
to (Sahla & Ardianto, 2022). Accountants in the company have an important role in
making financial statements. The financial statements made by an accountant must be
accountable (Sulistyowati, 2017). An accountant in carrying out his obligations must
comply with the code of ethics, comply with existing rules. Accountant is one of the
important professions in the business field because it is related to finance, therefore
accountants must apply the ethics of the existing accounting profession (Payne, Corey,
Raiborn, & Zingoni, 2019). The Indonesian Institute of Accountants (Keuangan, 2019)
which stipulates the accountant's code of ethics, the code of ethics is a norm and behavior
that regulates the relationship between auditors and customers, between auditors and
colleagues, and with the community.
The financial statements made can meet applicable standards and are made in
accordance with the original circumstances (Ana & Ga, 2021). The code of ethics is a
standard that must be met, including for accountants in carrying out their professional
duties (Laela & Meikhati, 2009). There are ethical standards applied in the company,
namely accountants play a role in providing information in the form of financial
statements for stakeholders as a consideration for decision making (Thoyibatun, 2012).
The Code of Ethics of the Indonesian Institute of Accountants aims to be a guideline and
rule for all members, both covering the business of public accountants, in the business
environment, in government institutions and in the education sector. This code of ethics
contains standards of conduct as guidelines for all accountants and auditors. According
(Sahla & Ardianto, 2022). This standard of behavior forms the basic principles in carrying
out its practice and the obligation to carry out professional responsibilities wisely,
responsibility, and honor is the duty of the accountant in applying this code of ethics the
accountant pays attention to the applicable laws and regulations. This study aims to find
out whether accounting ethics has a significant influence on the quality of financial
statements (Jaijairam, 2017). The accounting ethics studied are in the form of integrity,
objectivity, competence, confidentiality, and professional behavior. Manipulation of
financial statements is a very big problem and has a severe impact on the quality of
financial statements. Some well-known companies such as PT. Asuransi Jiwasraya, PT.
Hanson International Tbk, PT. Garuda Indonesia, and so on, is proven to have carried out
financial statement manipulation activities.
Business activities that are implemented with ethics will prevent the company from
various violations committed by business people which result in disrupted business
continuity (Donthu & Gustafsson, 2020). One form of violation that often occurs is fraud
in the disclosure of the company's financial statements. Financial statements are a
benchmark of the company's performance. Therefore, the company wants to display its
financial statements well to maintain the trust of consumers. According to (Payne et al.,
2019) Intentional financial fraud consists of manipulating transaction evidence and
recording financial statements, identifying, accounting and reporting and disclosing
transactions and deliberately eliminating a number of data, attachments, events and
accounting information. Financial statements are prepared by the company's accountant
with the aim of providing information to interested parties. According to (Ariail, Smith,
& Smith, 2020). The information contained in this financial statement will be audited by
a public accountant before being used by interested parties in making decisions. The
important function of financial statements certainly demands good quality (Paseková,
Kramná, Svitáková, & Dolejšová, 2019). The code of ethics of an accountant is also
needed to produce actual financial reports and to detect fraudulent financial reporting,
especially at PT Lintas Samudra Jaya. PT Lintas Samudra Jaya requires that the
Eduvest – Journal of Universal Studies
Volume 2 Number 10, October, 2022
2021
http://eduvest.greenvest.co.id
preparation of good financial statements must be adjusted to applicable financial
accounting regulations and standards. In the financial
statements should give the same views to its readers and actual. Financial statements must
also contain a description of the financial transactions that actually occurred (Pratiwi,
2022). The quality of financial statements will indirectly determine the accuracy in
decision making. The right decision will affect the success of the relevant parties.
Differences in interest in financial statements will affect the quality of financial
statements, because individual and corporate greed, low independence, and avoidance of
rules are weaknesses found in accountants (Arum Ardianingsih, 2021). To maintain a
good and reliable report quality, for PT Lintas Samudra Jaya, it requires an accountant
code of ethics consisting of responsibility, public interest, intergrity, objectivity and
independence, prudence, scope and nature of service principles so that later they will be
able to have an accountant who performs their duties in accordance with the existing code
of ethics and is able to detect dna as well as prevent fraudulent financial reporting at PT
Lintas Samudra Jaya.
Based on the background that has been explained, the researcher will conduct a
study entitled The influence of the accountant's code of ethics in detecting fraudlent
financial reporting on Pt Lintas Samudra Jaya. This study aims to reveal whether there is
a relationship between the influence of the accountant's code of ethics in the detection of
fraudlent financial reporting on PT Lintas Samudra Jaya
RESEARCH METHOD
The type of research used in this study is a qualitative type of research. descriptive
research is research that seeks to describe a symptom, an event that occurred at the present
moment or an actual problem (Sugiyono, 2021). This research seeks to collect existing
facts, this research focuses on trying to reveal a problem and situation as it is, which is
researched and studied as something whole. The qualitative type of research in this study
was taken to reveal whether there is a relationship between the influence of the
accountant's code of ethics in the detection of fraudlent financial reporting on PT Lintas
Samudra Jaya. The data used in this study is qualitative data consisting of primary data
and skunder data. Data containing the company profile, vision and mission,
organizational structure, and company development of PT. Lintas Samudra Jaya. The data
sources used in the study are primary and secondary data sources. Primary data is obtained
from the results of interviews and questionnaires while secondary data comes from books,
articles and related journals.
RESULT AND DISCUSSION
From the results of interviews and questionnaires from 35 accountants at LSJ Group
submitted by all accountants of PT Lintas Samudera jaya revealed that all accountants
working at LSJ Group are reliable, qualified and responsible accountants. Judging from
the recruitment process to become an accountant in the LSJ group, you must have
accounting knowledge that facilitates and must have an honest attitude and responsibility,
because with honesty and responsibility, the accountant is able to apply the code of ethics
as an accountant.
1. Principles of Responsibility
Famia Septa Dinda Alfia, Sri Trisnaningsih
The Influence Of Accountant Code Of Conduct In Detecting Fraudulent
Financial Reporting On Pt Lintas Samudra Jaya
2022
LSJ Group accountants are able to implement a code of ethics from the principle
of responsibility as evidenced by the preparation of financial statements, accountants
are able to provide the best and real performance so that they are able to provide actual
and accountable company financial reports. As well as the duty of the responsible
accountant, when there is a decrease or increase in the turnover of the accountant
company, it is able to analyze what factors drive the increase or decrease in the LSJ
Group. LSJ Group accountant whose main task is to provide information to company
leaders and is responsible for preparing various company financial information, both
for internal and external parties. In addition, accountants to carry out planning and
budgeting, making external financial reports, and so on. Then it can be said that LSJ
Group accountants apply the principle of the code of ethics of responsibility
2. Principles of Integrity
LSJ Group accountants are able to apply the code of integrity ethics, it is proven
that accountants present financial statements in accordance with existing realities and
accountants in LSJ Group are said to have integrity because they hold the principle of
honesty in their work. Because in LSJ Group for all company accountants must have
an honest, straightforward nature and always provide real and actual financial
statement information.
3. Principles of Public Interest
From the results of the research, it can be seen that as an accountant, the company
must produce a reliable financial report, therefore to assess the company's performance
and besides that as an accountant, it must have the principle of public interest, it can
be seen that the LSJ Group accountant plays an important role from clients, creditors,
government, employers, employees, investors, the business and financial world, and
other parties in maintaining the orderly running of business functions. LSJ Group
accountants give rise to the accountant's responsibility to the public interest. The public
interest is defined as the interests of society and the institutions that members serve as
a whole. This dependence causes the attitude and behavior of the accountant in
providing his services to affect the economic well-being of society and the state.
Therefore, the LSJ Group accountant has implemented a code of ethics as an
accountant, namely the public interest.
4. Principles of Objectivity and Independence
LSJ Group accountants are able to have a code of ethics of objectivity and
independence applied or proven through the results of wawancra which reveals that
LSJ Group accountants must be fair, impartial, intellectually honest, not prejudiced or
biased, and free from conflicts of interest or be under the influence of other parties so
that accountants will strive to produce reasonable financial statements. Independence
is capable of being demonstrated from accountants who work honestly not only
towards the management and owners of the company, but against creditors and other
parties to whom they put their work confidence in the accountant. For accountants, the
need to maintain or maintain an independent mental attitude in order to fulfill their
professional responsibilities is not the only thing that is essential, but the trust of users
of financial statements in the independence of accountants is also very important
5. The Principle of Prudence
In the interview results, the LSJ group accountants have a code of ethics, the
prudence principle is shown from being able to implement all accounting knowledge
in the world of real work as an accountant by making financial arrangements that are
Eduvest – Journal of Universal Studies
Volume 2 Number 10, October, 2022
2023
http://eduvest.greenvest.co.id
very informative and able to provide information confidence for all interested parties.
Always be careful in doing tiugas and obligations as an accountant.
6. Scope and Nature of Service Principals
LSJ Group Accountants have implemented all codes of ethics that have been in
accordance with the provisions so that for Practice in companies that have internal
quality control procedures to ensure that services are provided competently and
adequately supervised this has also been implemented olhe LSJ Group.
LSJ Group has qualified accounting staff by being able to show that most
accounting in LSJ Group already has and implements a code of ethics as an accountant
for work every day. Because the work of an accountant requires someone who has
honesty, skills and understands ethics along with the existing code of ethics, LSJ
Group from the beginning of the recruitment process made the recruitment to be able
to produce quality accountants. In addition, based on sources from LSJ Group
respondents due to the tragedy of fraud committed by one of the accountants in 2016,
LSJ Group management made several changes by conducting regular meetings every
3 months and every 2 weeks training was always held to be able to provide quality
accountant performance who always applies the code of ethics as an accountant.
From the results of research conducted by researchers conducted with interviews
and questionnaires, it can be seen that in 2016 LSJ Group had a problem where LSJ
Group accountants made fraudulent financial reporting. Learning from the events in
2016, the management of LSJ Group took steps that were able to change the situation
where the accountant needed by the company was an honest accountant, responsible
and always provided real and actual data. It is very important for an accountant to have
and understand the code of ethics as an accountant because with that the performance
will be a good and reliable result. Therefore, some of the steps taken by LSJ Group to
provide quality accountants for the company are taking steps to conduct financial
report meetings every 3 months and conducting accountant training to provide
motivation and make accountants quality every 2 weeks. With that, the company's
management will be closer to all LSJ Group accountants and be able to monitor and
directly assess the performance of each LSJ Group accountant. So that the accountant's
code of ethics affects the detection of fraudulent financial reporting at PT Lintas
Samudra Jaya.
CONCLUSION
Based on the results of the tests and discussions that have been presented, the results
of this study conclude that the accountant's code of ethics affects the detection of
fraudulent financial reporting against PT Lintas Samudra Jaya. It can be proven by
interviews of LSJ Group accountants that all LSJ Group accountants are able to have an
accountant code of ethics consisting of responsibility, public interest, integrity,
objectivity and independence, prudence, scope and nature of service principles. In fact,
in 2016 LSJ Group had a problem where LSJ Group accountants made fraudulent
financial reporting. Learning from the events in 2016, the management of LSJ Group took
steps that were able to change the situation where the accountant needed by the company
was an honest accountant, responsible and always provided real and actual data. It is very
important for an accountant to have and understand the code of ethics as an accountant
because with that the performance will be a good and reliable result. Therefore, some of
Famia Septa Dinda Alfia, Sri Trisnaningsih
The Influence Of Accountant Code Of Conduct In Detecting Fraudulent
Financial Reporting On Pt Lintas Samudra Jaya
2024
the steps taken by LSJ Group to provide quality accountants for the company are taking
steps to conduct financial report meetings every 3 months and conducting accountant
training to provide motivation and make accountants quality every 2 weeks. With that,
the company's management will be closer to all LSJ Group accountants and be able to
monitor and directly assess the performance of each LSJ Group accountant.
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