Definition of Ethics (Etymology), derived from the Greek is
'Window dressing' is not an ethical
"Ethos", which means the character of decency or custom
(custom). Ethics is usually closely related to the moral
word which is a Latin term, "Mos" and in the plural
"Mores", which means also the customs or way of life of a
person by doing good deeds (decency), and avoiding
things of action the bad one. Ethics and morals are more
or less the same as understanding, but in everyday
activities there are differences, namely morality or
morality for the judgment of actions done, while ethics is
for assessment of the prevailing system of values. Ethics is
the Science that discusses the good deeds and bad deeds
of human beings as far as the human mind can
comprehend.
Business ethics is a way to conduct business activities,
covering all aspects related to individuals, companies and
society. Business Ethics in a company can establish the
values, norms and behaviors of employees and leaders in
building a fair and healthy relationship with customers /
partners, shareholders, community. The company
believes in good business principles is an ethical business,
a business with superior performance and sustainable run
by obeying the rules of ethics in line with applicable laws
and regulations. Business Ethics can be a standard and
guideline for all employees including management and
make it a guideline for carrying out daily work with a moral
based on a noble, honest, transparent and professional
attitude.
Utilitarianism: Derived from Latin is utilis which has a
useful meaning. According to this theory, an act has a
good meaning if it brings benefits to the whole society
(The greatest happiness of the greatest number).
Example: Andi in his village who built the cooperative to
help some people in his village
Deontology comes from the Greek deon which means
obligation. Example: Andi Moslem must pass the
appropriate worship taught.
In today's moral thinking, rights theory is the most widely
used approach for evaluating either an act or a behavior.
This right theory is an aspect of deontology because it
deals with obligations. Rights are based on human dignity
and the dignity of all human beings is the same. Example:
An employee who receives a monthly salary as his right
In the theory of virtue look at one's attitude or morals.
Virtue can be defined as the disposition of character that
a person has acquired and enables one to behave morally.
Example: Wisdom: A company leader must be wise to
make decisions within the company.
'Window dressing' is the act of manipulating the financial
statements of an entity so as to show a better financial
position and performance than their actual existence. It is
a form of creative accounting and while the financial
statements may have been prepared in accordance with
proper accounting standards, there is bias in the way the
figures are presented.
way of preparing financial statements. In preparing
financial statements, the preparer must ensure that the
information is prepared honestly and fairly and that it can
be relied upon by the users of those financial statements.
If the financial statements are altered so that they do not
present fairly the performance and position of the entity,
then they may be misleading to users.
Prior research has looked at the theory of planned
behavior to understand factors related to earnings
management. Research has shown that the theory of
planned behavior can help explain unethical and
fraudulent financial reporting. It states that behavior can
be explained by intentions, which are shaped by three
factors: attitude toward the behavior, the subjective
norm, and perceived control over the behavior. In regard
to earnings management behavior, the first factor,
attitude toward the behavior, may be influenced by
knowledge of SOX. The second factor, the subjective norm
for earnings management behavior (as perceived by
accountants and managers) may be influenced by the
general attitude of society concerning the ethics of
earnings management as well as by the general attitude
toward earnings management within individuals’
organizations. Organizational cultural or social norms
regarding the ethics of earnings management may vary
significantly, with the views of top management playing a
significant role in shaping the organizational social norm.
The passage of SOX may change individual perceptions of
the societal norm regarding the ethics of earnings
management. If the organization has not reduced its
tolerance for earnings management in response to SOX,
accountants or managers (particularly those familiar with
SOX) may see a greater difference between the perceived
societal norm and the organizational cultural norm for
earnings management behavior. In that case, an individual
may judge the organization and earnings management
behavior within the organization more harshly. Finally, in
accounting it is likely that the third factor, perceived
control over the behavior, is relevant only for those
directly involved in earnings management. For example,
internal auditors are not usually in a position to manage
earnings and would have little incentive to do so unless
they are cooperating in a fraud.
Summarizing the responses, William Bruns and Merchant
found no consensus that any of the scenarios were either
completely ethical or completely unethical.12 They also
suggested that five factors appear to influence judgments
about the acceptability of earnings management
practices: 1. Method—accounting manipulations were
less acceptable than operating manipulations. 2.
Direction—increasing earnings was less acceptable than
reducing earnings. 3. Materiality—actions involving large
amounts were less acceptable than those involving small
amounts. 4. Time period—affecting annual reports was
less acceptable than affecting quarterly reports. 5.
Operating method—offering extended credit terms (to
boost revenue) was less acceptable than selling excess
assets or using overtime to increase shipments.

Type of intelligence:
Small to big:
Spirit, feeling (mental exercise), mind (intellectual
intelligence), desire (physical intelligence)
Desire can affect mind. Unity of desire and mind is human
ego, if we do something based on positive feeling, positive
mind&desire then we will do ethical action called human
ethical action. The real ethical action if we do something
based on what god’s order.
Physical exercise: fasting, sport, dzikir
Intellectual exercise: enriching knowledge, critics, take
positive actions, dzikir
Mental exercise: empower positive feeling, taking positive
action based on positive feeling, dzikir
Positive/ love feeling: to my own body, people, animal,
plant, things, prophet, god

Code of conduct in audit

Responsibilities - In carrying out their professional duties,
CPAs should exercise sensitive professional and moral
judgments in all their activities.
The Public Interest . CPAs should act in a way that will
serve the public interest, honor the public trust, and
demonstrate commitment to professionalism.
Integrity . To maintain and broaden public confidence,
CPAs should perform their professional duties with the
highest sense of integrity.
Objectivity and Independence . CPAs should maintain
objectivity and be free of conflicts of interest in the
performance of their professional duties. CPAs in public
practice should be independent in fact and appearance
when providing auditing and other attestation services.
Due Care . CPAs should observe the profession's technical
and ethical standards, strive continually to improve
competence and the quality of services, and discharge
professional responsibility to the best of their ability.