Professional due care requires accountants to make decisions based on thorough analysis and consideration of potential risks. In the case of Jiwasraya, there was a lack of due care in making investment decisions. The company was known to invest in highly volatile instruments without considering potential losses. Accountants must play an active role in providing advice based on data and risk analysis.
4. Confidentiality
 Confidentiality is a key principle in accounting ethics that requires accountants to safeguard and protect sensitive information obtained in the course of carrying out their professional duties. Accountants are expected not to disclose this information without proper authorization, unless legally required. In the context of PT Asuransi Jiwasraya, the breach of the confidentiality principle has led to the collapse of the company and damaged public confidence in the insurance sector and accounting as a whole.
a. Misuse of Sensitive Information
In the Jiwasraya case, there are indications that sensitive information regarding the company's financial condition and investment strategy was not well protected. For example, data related to high-risk investments should be kept confidential to prevent misuse by certain parties. However, there is a possibility that this information could be leaked or used for personal gain by irresponsible parties, such as management or external entities.
b. Third Party Involvement
The principle of confidentiality also requires accountants to limit access to confidential information to authorized parties. In the Jiwasraya scandal, it is possible that the company's financial and strategic information was shared with third parties without permission or clear need. This has the potential to create a conflict of interest and poses a risk of misuse of information.
c. Lack of Transparency and Oversight
Violation of the confidentiality principle can also occur due to a lack of transparency and oversight in company management. In the case of Jiwasraya, inadequate management mechanisms for handling sensitive information can lead to information leaks. Accountants have a responsibility to protect this information, but without management support, maintaining the confidentiality principle becomes difficult.
d. Obligation to Disclose Information
Although the confidentiality principle requires accountants to protect information, there are also legal obligations that may compel accountants to disclose certain information.Â
