Professional ethics are a very important foundation for every profession, especially for accountants who play an important role in ensuring transparency and accuracy of the company's financial reports. However, violations of ethical principles often occur, one of which is the scandal involving PT Asuransi Jiwasraya. The case of PT Asuransi Jiwasraya has become a public concern because the losses suffered by the company were quite large due to manipulation of financial reports and irresponsible investment decisions. This violation not only resulted in financial losses, but also tarnished the good name of the company and the accounting profession as a whole. In this context, it is important to understand the basic principles of accountant ethics that were violated in PT Asuransi Jiwasraya which became one of the biggest financial scandals in Indonesian history. It is important to understand the 5 basic principles of ethics violated by the parties involved, especially in the financial scandal that resulted in state losses of up to billions of Rupiah.
1. Integrity
The principle of integrity is one of the main pillars in the ethics of the accounting profession. Accountants are required to always be honest, fair, and act based on the principle of truth, without hiding information that could mislead users of financial statements. Integrity is the basis for public, investor, and regulator trust in the information presented by the company. However, in the case of PT Asuransi Jiwasraya, this principle was significantly violated, which ultimately triggered one of the biggest financial scandals in Indonesia.
a. Manipulation of Financial Reports
The most prominent integrity violation in the Jiwasraya case was the manipulation of financial statements. The insurance company aimed to present a healthy and financially profitable image to the public and regulators, even though it actually suffered significant losses from high-risk investments. In its financial statements, Jiwasraya allegedly engaged in "window dressing", namely falsifying financial statements to hide actual losses.
b. Dishonesty in Disclosure of Information
The principle of integrity requires accountants to disclose information honestly, especially information that can influence the economic decisions of users of financial statements. In the Jiwasraya case, there are indications that the company failed to disclose important information related to its risky investments, especially in stock mutual funds with highly fluctuating values. Rather than being transparent about the potential for large losses from these investments, management and accountants chose to hide the facts.
c. Presentation of Misleading Information
Integrity is also related to providing information that is not misleading. In the Jiwasraya case, the company allegedly presented figures that did not correspond to the actual conditions, such as exaggerating the value of assets and delaying the recognition of losses. As a result, the company's financial statements provided a misleading picture to the public and shareholders.
d. Accountants Involved in Scandals
Accountants involved in the preparation of Jiwasraya's financial statements have a great responsibility to uphold the integrity of their profession. However, in this scandal, they appear to have violated that responsibility by following management's instructions to manipulate the financial statements. The principle of integrity should prevent accountants from engaging in unethical or illegal actions. Accountants with integrity will refuse to engage in legal and ethical violations, even when under pressure from management or shareholders.