American Journal of Theoretical and Applied Business

| Peer-Reviewed |

The Effect of Understanding Codes of Ethics and Independence upon the Ethical Judgement and Personal Value as an Intervening Variable

Received: 23 January 2018    Accepted: 08 February 2018    Published: 28 February 2018
Views:       Downloads:

Share This Article

Abstract

This research aims to examine the effect of understanding codes of ethics (uce) and independence (i) upon the ethical judgement (ej) thru the personal value (pv) of the public accountant. Data collected using purposive sampling and total of the samples is 301 respondents of accountants in Indonesia. The constructs which have been directly affected one to another in this research is uce and i upon pv; uce, i and pv upon ej. However, there has been any direct effect of the accountants in Indonesia occurred upon their pv against ej accordingly. The model offered has indicated the impact of uce, i, pv and ej. Accountants in Indonesia might have made more discreet decision thru the ethical judgement based on the actual facts. The resulted a direct effect of uce and i upon pv; uce, i and pv upon ej, however, there are direct effect of the understanding codes of ethics and independence has happened to the personal value upon the ethical judgement.

DOI 10.11648/j.ajtab.20180401.12
Published in American Journal of Theoretical and Applied Business (Volume 4, Issue 1, March 2018)
Page(s) 8-14
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Understanding of Codes of Ethics (uce), Independence (i), Personal Value (pv), Ethical Judgement (ej)

References
[1] Abdolmohammadi, M. J. and C. R. Baker. (2006). Accountants’ value preferences and moral reasoning. Journal of Business Ethics, 69 (1): 11-25.
[2] AICPA, (2015). American Institute of Certified Public Accountants, Inc. New York, NY 10036-8775.
[3] Akaah, I. P, and Lund, D. (1994). The influence of personal vand organizational values on marketing professional’ ethical behavior, Journal of Business Ethics, Vol 13, pp. 417-30.
[4] Alteer, A. M., Yahya, S. B., dan Haron, M. M. (2013). Auditors’ Personal Values And Ethical Judgement At Different Levels Of Ethical Climate: A Conceptual Link, Journal of Asian Scientific Research, 3 (8): 862-875.
[5] Ashbaugh, H; Lafond, R dan Mayhew, B. W. (2003). Do Nonaudit Services Compromise Auditor Independence? Further Evidence. The Accounting Review. 78, (4): 611–639.
[6] Au, A., dan Wong, D. (2000). The impact of guanxi on the ethical decision-making process of auditors - an exploratory study of Chinese CPAs in Hong Kong. Journal of Business Ethics, 28 (11): 87-93.
[7] Booth, Peter dan Schulz, Axel K-D. (2004). The Impact of an Ethical Enviroment on Manager’s Project Evaluation Judgment Under Agency Problem Condition, 29 (11):473-488.
[8] Brief, A. P., Dukerich, J. M., Brown, P. R., dan Brett, J. F. (1996). What’s Wrong with the Treadway arenCommission Report? Experimental Analyses of the Effects of Personal Values and Codes of Conduct on Fraudulent Financial Reporting, Journal of Business Ethics, 15 (2): 183–198.
[9] Brooks, J. L dan Dunn, P. (2015). Business Ethics and Profession for Director, Executive, and Auditors, Fifth Edition, Book 1&2, Jakarta: Salemba Empat.
[10] Coleman, M.; Kreuze, J. dan Langsam, S. (2004). The new scarlet letter: Student perceptions of the accounting profession after Enron. Journal of Education for Business, 79 (3), 134-141.
[11] Finegan, J. (1994). The impact of personal value on judgements of ethical behavior in the workplace, Journal of Marketing, Vol 49, pp. 87-96.
[12] Ghozali, I dan Fuad. (2005). Structural Equation Modeling: Theory, Concept, and Application with Program Lisrel 8.54, Badan Penerbit Universitas Diponegoro, Semarang.
[13] Herron, T. L. and Gilbertson, D. L. (2004). Ethical principles vs. ethical rules: the moderating of moral development on audit independent judgements. Business Ethics Quarterly, 14 (3): 499-523.
[14] Jones, J; Massey, D. W; and Thorne, L. (2003). Auditors' Ethical Reasoning: Insights From Past Research And Implications For The Future. Journal of Accounting Literature, 22 (11): 45-103.
[15] Jones, T. M. (1991). Ethical decision-making by individuals in organizations: an issue-contingent model, Academy of Management Review, 16, (3): 366-395.
[16] Karacaer, S; Gohar, S; Aygun, M dan Sayin, C. (2009). Effects of personal values on auditor’s ethical decisions: A comparison of Pakistani and Turkish professional auditors. Journal of Business Ethics, 88 (1): 53-64.
[17] Krishnamurthy, S; Zhou, J dan Zhou, N. (2002). Auditor Reputation, Auditor Independence and the Stock Market Reaction to Andersen’s Clients, School of Management, SUNY– Binghamton University, NY.
[18] Kung, Fan-Hua dan Huang, Cheng Li. (2013). Auditors’ moral philosophies and ethica beliefs. Department of Accounting, Tamkang University, Taipei, Taiwan. Management Decision, 51 (3): 479-500.
[19] Muawanah, U. dan N. Indriantoro. (2001). Auditor Behavior in Audit Conflict Situations: The Role of Locus of Control, Professional Commitment and Ethical Awareness, Jurnal Riset Akuntansi Indonesia, 4 (2): 133-150.
[20] Nur, E. D. P; Julita dan Wahyudi, D. P. (2014). The Effect of Ethics, Competency, Auditor Experience, and Audit Situation upon Accuracy of Giving Audit Opinion Through Consideration of Materiality And Skepticism Of Professional Auditors, Jurnal Forum Bisnis dan Kewirausahaan, 3, (3). 116-132.
[21] Pflugrath, G; Bennie, N. M; dan Chen, L. (2007). Causal effects of regulatory, organizational and personal factors on ethical sensitivity, Journal of Business Ethics, 30 (6): 123-59.
[22] Shafer, W. E., Morris, R. E. dan Ketchand, A. A. (2001), Effects of personal values on auditors’ ethical decisions, Accounting, Auditing & Accountability Journal, 14 (3): 254-77.
[23] Wright, G. B., Cullinan, C. P. dan Bline, D. M. (1997). The rellationship between an individual’s values and perceptions of moral intensity: an empirical study, Behavioral Research in Accounting, 9: 26-40.
Author Information
  • Department of Accounting, Economic College of Binaniaga, Bogor, Indonesia

  • Department of Accounting, Tarumanagara University, Jakarta, Indonesia

  • Department of Accounting, Trisakti University, Jakarta, Indonesia

  • Department of Accounting, Pelita Harapan University, Jakarta, Indonesia

Cite This Article
  • APA Style

    Yuli Anwar, Sukrisno Agoes, Muhammad Nuryatno Amin, Antonius Herusetya. (2018). The Effect of Understanding Codes of Ethics and Independence upon the Ethical Judgement and Personal Value as an Intervening Variable. American Journal of Theoretical and Applied Business, 4(1), 8-14. https://doi.org/10.11648/j.ajtab.20180401.12

    Copy | Download

    ACS Style

    Yuli Anwar; Sukrisno Agoes; Muhammad Nuryatno Amin; Antonius Herusetya. The Effect of Understanding Codes of Ethics and Independence upon the Ethical Judgement and Personal Value as an Intervening Variable. Am. J. Theor. Appl. Bus. 2018, 4(1), 8-14. doi: 10.11648/j.ajtab.20180401.12

    Copy | Download

    AMA Style

    Yuli Anwar, Sukrisno Agoes, Muhammad Nuryatno Amin, Antonius Herusetya. The Effect of Understanding Codes of Ethics and Independence upon the Ethical Judgement and Personal Value as an Intervening Variable. Am J Theor Appl Bus. 2018;4(1):8-14. doi: 10.11648/j.ajtab.20180401.12

    Copy | Download

  • @article{10.11648/j.ajtab.20180401.12,
      author = {Yuli Anwar and Sukrisno Agoes and Muhammad Nuryatno Amin and Antonius Herusetya},
      title = {The Effect of Understanding Codes of Ethics and Independence upon the Ethical Judgement and Personal Value as an Intervening Variable},
      journal = {American Journal of Theoretical and Applied Business},
      volume = {4},
      number = {1},
      pages = {8-14},
      doi = {10.11648/j.ajtab.20180401.12},
      url = {https://doi.org/10.11648/j.ajtab.20180401.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ajtab.20180401.12},
      abstract = {This research aims to examine the effect of understanding codes of ethics (uce) and independence (i) upon the ethical judgement (ej) thru the personal value (pv) of the public accountant. Data collected using purposive sampling and total of the samples is 301 respondents of accountants in Indonesia. The constructs which have been directly affected one to another in this research is uce and i upon pv; uce, i and pv upon ej. However, there has been any direct effect of the accountants in Indonesia occurred upon their pv against ej accordingly. The model offered has indicated the impact of uce, i, pv and ej. Accountants in Indonesia might have made more discreet decision thru the ethical judgement based on the actual facts. The resulted a direct effect of uce and i upon pv; uce, i and pv upon ej, however, there are direct effect of the understanding codes of ethics and independence has happened to the personal value upon the ethical judgement.},
     year = {2018}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - The Effect of Understanding Codes of Ethics and Independence upon the Ethical Judgement and Personal Value as an Intervening Variable
    AU  - Yuli Anwar
    AU  - Sukrisno Agoes
    AU  - Muhammad Nuryatno Amin
    AU  - Antonius Herusetya
    Y1  - 2018/02/28
    PY  - 2018
    N1  - https://doi.org/10.11648/j.ajtab.20180401.12
    DO  - 10.11648/j.ajtab.20180401.12
    T2  - American Journal of Theoretical and Applied Business
    JF  - American Journal of Theoretical and Applied Business
    JO  - American Journal of Theoretical and Applied Business
    SP  - 8
    EP  - 14
    PB  - Science Publishing Group
    SN  - 2469-7842
    UR  - https://doi.org/10.11648/j.ajtab.20180401.12
    AB  - This research aims to examine the effect of understanding codes of ethics (uce) and independence (i) upon the ethical judgement (ej) thru the personal value (pv) of the public accountant. Data collected using purposive sampling and total of the samples is 301 respondents of accountants in Indonesia. The constructs which have been directly affected one to another in this research is uce and i upon pv; uce, i and pv upon ej. However, there has been any direct effect of the accountants in Indonesia occurred upon their pv against ej accordingly. The model offered has indicated the impact of uce, i, pv and ej. Accountants in Indonesia might have made more discreet decision thru the ethical judgement based on the actual facts. The resulted a direct effect of uce and i upon pv; uce, i and pv upon ej, however, there are direct effect of the understanding codes of ethics and independence has happened to the personal value upon the ethical judgement.
    VL  - 4
    IS  - 1
    ER  - 

    Copy | Download

  • Sections