Conclusion
Violations of accounting ethics have a far-reaching impact and have a long-term impact. From loss of trust and reputation, to legal and regulatory consequences, as well as impacts on stakeholders, violations of accounting ethics can lead to significant losses. Case examples such as Enron, AIG, and PT Asuransi Jiwasraya show how important it is to maintain integrity and objectivity in financial reporting. Business and accounting regulatory reforms such as the Sarbanes-Oxley Act also show that the public and regulators are striving to prevent future violations of accounting ethics. Therefore, it is important for accounting professionals to understand and follow the ethical principles that apply in their profession.
Violations of accounting ethics have far-reaching and serious impacts and consequences. Financial losses, decreased public trust, legal sanctions, and negative impacts on employees are some of the direct impacts of such breaches. In addition, ethical violations can also result in a loss of investor trust, losses for stakeholders, a decline in the reputation of the accounting profession, and a long-term impact on the company. Therefore, it is important for every accountant and company to maintain ethics in accounting practices to ensure that integrity and public trust are maintained.
Suggestion
Ethics Education
It is important to educate employees or members of the organization about the importance of ethics and the implications of violations, so that they better understand their moral responsibility.
Supervision and Enforcement
Establish a strict monitoring system to detect ethical violations and enforce clear sanctions for violators so that they are aware of the consequences of their actions.
Encourage Reporting
Creating a safe channel for reporting ethical violations so that individuals feel comfortable reporting without fear of retaliation.
Transparency
