1

GREY AREA OF ETHICS: THE SIGNIFICANCE OF LEVINAS’

PERSPECTIVE ON ACCOUNTING

STUDENTS’ DELIBERATIVE

MORAL REASONING

Kias Ayu Damara

Supriyadi

( Universitas Gadjah Mada )

ABSTRACT:This study aims to analyze the significance of Levinas‟ perspective on the

deliberative moral reasoning of accounting students when facing a grey area of ethics in a

corporate accounting context. In a between-subjects experimental design, 36 undergraduate

accounting students at Faculty of Economics and Business, UniversitasGadjahMada, were

randomly assigned into two groups, which are treatment group and control group. The first

group received a treatment of Levinas‟ perspective, while the second received no treatment at

all. However, both responded to the same four ethical dilemmas faced by corporate accountants

designed to measure their deliberative moral reasoning. As expected, students in the treatment

group exhibited significantly higher deliberative moral reasoning than those in the control

group. This result thus suggests that Levinas‟ perspective has significance on accounting

students‟ deliberative moral reasoning when facing a grey area of ethics in a corporate

accounting scheme.

Keywords: Levinas‟ perspective, deliberative moral reasoning, accounting students, grey area

of ethics.

INTRODUCTION

Nowadays, there has been a widespread belief that the world is facing the era of moral

freedom, when people are more inclined to create their own morality (Wolfe, as cited in Bruhn,

2009).Corporate accountants, as we fully aware, are likely to face the grey area of ethics. It is

possibly due to their position, as explained by Gowthorpe and Amat (2005) that preparers of

financial statements are in a position to manipulate the economic reality view provided by those

statements to interested parties. As such, accountants now, as a group, are regarded to have

lower levels of moral reasoning than other professional groups (Eynon et al., as cited in

McPhail& Walters, 2009).

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Apart from an individual‟s ethical ideology and moral philosophy, some blamed the

negative effect business and accounting education have on ethical development of students

(McCabe and colleagues, 1991, and Gray and colleagues, 1994, as cited inMcPhail& Walters,

2009). More specifically, some researchers pointed out that ethics education students received

during college are seen to contribute to poor ethical choices (Jennings, 2004; Fleming et al.,

2009). Vis-à-vis to that argument, Roberts also noted that ethics in business can only be

perceived as a strategy of being seen to be ethical, which is the obverse of being responsible (as

cited in Aasland, 2004).

The above issue is important since ethics education which does not depart from the „real

ethics‟ may not result in ethical behavior of students expected to be corporate accountants in

the future. This study thus examines how to enhance the deliberative moral reasoning of

accounting students, which involves the formulation of an intention to act on a particular

ethical dilemma (Thorne, 2000) with Levinas‟ perspective which is argued to be related to what

„real ethics‟ is. The focus on the deliberative moral reasoning is chosen because according to

Fleming et al. (2009), understanding students‟ ability to execute professional judgment is

crucial to assessing the outcome of accounting education.

Moran (in McPhail& Walters, 2009) explained that, for Levinas, the phenomenology of

ethics is associated with „the effort to constrain one‟s freedom and spontaneity in order to be

open to the other person, or more precisely to allow oneself to be constrained by the other.‟ In

other words, there is a tendency to do otherwise than privileging oneself over the others

(Aasland, 2004). Such a motive is what Aasland called ethics. This study then hypothesizes that

there is a significant difference in the deliberative moral reasoning between students with

Levinas‟ perspective and those without it.

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The hypothesis is tested by employing a 1 x 2 between subject experimental design.

Thirty six undergraduate accounting students who participated in this study were randomly

assigned into two groups, of which treatment group got Levinas‟ treatment,while control group

did not get it, yet, both groups responded to the same measurement of deliberative moral

reasoning in corporate accounting context, which is Fleming et al.‟s adaptation of Accounting

Ethical Dilemma Instrument (AEDI) developed by Thorne. As expected before, there is a

significant difference between deliberative moral reasoning in both groups. Moreover, this

research found that accounting students in the treatment group exhibited a higher level of

deliberative moral reasoning than those in the control group.

The results of this study enrich the studies of behavioral accounting and encourage

further research aimed to enhance the deliberative moral reasoning of accounting students who

later might become corporate accountants.As for accounting students, this research provides a

new approach which may help those who consider to becorporate accountants to exercise a

better professional judgment under a grey area of ethics.

The remaining of this paper is organized as follows. In the next section, background in

regards to ethics education is discussed and hypothesis of this research is developed. The

following section addresses research method for this study and presents the results. At last, this

paper concludes the research, outlines the limitations, as well as proposes some suggestions for

future research.

LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT

Ethical Ideologies: Idealism vs. Relativism

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Smith and Quelch (as cited in Lu & Lu, 2010) emphasized that the sources of ethical

disparities among individuals are idealism and relativism. Moral relativism alleges that all

moral standards are concerned with the culture in which they happened (Schlenker& Forsyth,

as cited in Lu & Lu, 2010). Forsyth stated that highly relativistic individuals are more likely to

believe that morals action depend on the encompassing circumstances and individuals involved

than believing simply in absolute moral truths (as cited in Marques & Pereira, 2009). Based on

moral relativism, moral rules cannot be derived from universal moral principles, but abide as a

function of time, place, as well culture. Thus, there is no set of rules that can be formulated to

determine what is right and what is wrong for all individuals (Swaidan,Vitell, &Rawwas,

2003).

Meanwhile, idealism describes the extent to which an individual focuses on the inherent

rightness or wrongness of an action, despite the consequences of that action (Swaidan et al.,

2003). Forsyth (as cited in Lu & Lu, 2010) explained that idealistic individuals comply with

moral absolutes when making moral judgments. Meanwhile, less idealistic people think that

harm is sometimes needed to produce well. They prefer to have a utilitarian perspective

suggesting that an action is right if it produces the greatest good for the greatest number of

people affected by the action, although it may harm a certain group of people (Forsyth, as cited

in Swaidan et al., 2003).

Cognitive-Development Theory

In general, people with cognitive developmental perspective have concentrated on the

study of the development of cognitive reasoning structures which trigger an ethical decision

choice (Thorne, 2000). Referring to Kohlberg‟s model of Cognitive Moral Development

(CMD), there are three levels of moral development, which are pre-conventional, conventional,

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and post-conventional (McPhail& Walters, 2009). For those with pre-conventional moral

development, the moral acceptability of alternative actions is defined by the rewards and

punishments. For people with conventional moral development, the moral acceptability

confirms to group norms. As for the last, moral development considers universal moral

principles regardless of the impacts on oneself (Thorne, 2000).

Based on this perspective, Rest‟s Model of Ethical Action has been widely used to define

the ethical decision process of accountants (Thorne 1998; Thorne 2000; Jones et al. 2003, as

cited in Fleming et al, 2009). The model has four components including: (1) identification of an

ethical dilemma, (2) ethical judgment, (3) intention to act ethically, and (4) ethical behavior

(Rest, as cited in Fleming et al, 2009).

The focus of this study is on investigating the ethical judgment by examining the

development and level of corporate accountants‟ moral reasoning, especially the deliberative

moral reasoning. As Thorne (2000) stated that deliberative reasoning is similar to an

accountant‟s intention to execute professional judgment to resolve an ethical dilemma.

Ethics for Business vs. Ethics in Business

Business ethics is recently being a very prominent business topic. Moreover, the

dilemmas and debates addressing business ethics have drawn a number of attention from

various parties (Crane &Matten, 2007). Aasland (2009) stated that there is still an unanswered

question left from both American and European literature: Is „business ethics‟ a knowledge of

„ethics for business‟ or is it a knowledge of „ethics in business?

Aasland (2009) stated that ethics for business describes – and prescribes – how

companies respond to ethical challenges in society, and thereby constitutes an important part of

the knowledge called business management. There are several reasons why Aasland regarded

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ethics for business as instrumental knowledge and not „real ethics‟: 1. The main interest of

business leaders is to find tools that can work instead of looking for the truth about humans as

well as their perspectives on right and wrong; 2. Economic and business management

knowledge is equipped with a logical structure, sometimes called „boomerang effect‟. It means

that it will always pay to behave morally, because if one does not, it will hit back at oneself and

one‟s company as decreased trust or a negative reputation; 3. In the end, pursuing the interest of

a company and more than that of others is self-centered perspective.

In contrast, what Aasland (2009) called ethics in business is the occurrence of the idea

that it is possible to put the other before myself, also within and between business

organizations. Thus, the difference between both terms is that, while ethics for business is

knowledge that business develops and applies for itself, ethics in business is ethics which can

only be applied and developed for the sake ofthe other.

Levinas’ Perspective

Campbell et al. (2009) argued that within a different stream of accounting ethics literature

there is a small but growing discussion about the ethics of Emmanuel Levinas (Shearer, 2002;

MacIntosh, 2004; Roberts, 2003; McKernan and KosmalaMacLullich, 2004) as well as a

sociological translation of Levinas‟ work provided by Zygmunt Bauman (McPhail, 2001;

Funnell, 1998; Junge, 2001, Tester, 2002). Levinas perceived ethics by employing a very

different perspective from traditional moral philosophy. He brought a phenomenological view

to the study of ethics (McPhail& Walters, 2009). He commented:

The absolute nakedness of a face, the absolute defenceless face, without covering,

clothing or mask, is what opposes my power over it, my violence and opposes it in an

absolute way, with an opposition which is opposition itself (cited in Bauman, 1993, p.

73).

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Levinas questioned, „how does the experience of ethics present itself to us; what is the

given-ness of ethics?‟ He realized that it presents itself through the Other, through the

encounter with the face; through the face to face (McPhail&Walters, 2009). To better

understand Levinas‟ perspective, there is Bauman‟s thought about Levinas‟ work within a

modern social context.

It will be only later, when I acknowledge the presence of the face as my responsibility,

that both I and the neighbor acquire meanings: I am I who is responsible, he is he to

whom I assign the right to make me responsible. It is this creation of meaning of the

Other, and thus also of myself, that my freedom, my ethical freedom, comes to be. (As

cited in Bauman, 1993: 86)

Bauman‟s explanation above makes Levinas‟ perspective more applicable to the

sociological perspective. It is the fundamental of sympathy and core responsibility for others

implied from Levinas‟ work. In order to bring Levinas‟ work into the economy, this research

suggests to once again refer to Aasland‟s book.

Aasland (2004) opened up the issue by explaining what Spinoza called conatus essendi

is. It is a will to preserve oneself, that applies to all unliving, as well as all living. However,

humans do not always follow their conatus. This kind of ethics differs with other ethical

ideologies which stated that ethics is developed from a reason, or even consequences one may

have on oneself as well as the others. Nonetheless, why it emerges is caused by the faculty to

be conscious and to reflect about himself or herself that each human has.

The capacity to question the conatus and set the other before oneself is, by Levinas,

suggested to happen from the encounter with the Other. Yet, he also acknowledges that I not

only meet with the Other, but also the third, the fourth, etc., as the Others. By then, I am forced

to always do evaluation, comparison, and searching for what is just, because the called forth

mercy for each unique Other drives me to always strive for more justice.

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Levinas‟ grounding of ethics begins with „the way the face of the Other makes a claim on

me to restrain myself‟ (McPhail& Walters, 2009). Moran (as cited in McPhail& Walters, 2009)

explained that for Levinas, the phenomenology of ethics involves „the effort to constrain one‟s

freedom and spontaneity in order to be open to the other person, or more precisely to allow

oneself to be constrained by the other.‟ This idea of good to be able to put the Other before the

I is what Aasland (2009) argued as the „real ethics‟. This research brings this perspective to be

applied in accounting context, particularly in the grey area of ethics faced by corporate

accountants.

Accordingly, the following alternative hypothesis tests the applicability of such

perspective in corporate accounting context.:

Ha: There is a significant difference in the deliberative moral reasoning between accounting

students, treated as corporate accountants, who get Levinas‟ treatment and those who do not.

RESEARCH METHOD

Participants

There were 48 undergraduate accounting students from Faculty of Economics and

Business, UniversitasGadjahMada, who participated in this study. Of the 48 participants, eight

failed the internal validity check. Furthermore, two failed in completing the assignments, and

the other two participants were omitted because they did not complete the assignments as

directed, thus, resulting in a final sample of 36. Based on demographic data, sixty-four percent

of the students were female, seventy-eight percent of the students were in their fourth year of

study at FEB UGM, and all of the participants had completed a business ethics course as well

as a cost accounting course.

Research Design, Variables, and Measurement

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This study analyzes the significance of Levinas‟ perspective on the deliberative moral

reasoning of accounting students in a corporate accounting context by employing a 1x2

between subject experimental design. The independent variable in this research is Levinas‟

perspective which is embedded in the treatment scenario, whereas the dependent variable being

studied is the deliberative moral reasoning of accounting students treated as corporate

accountants. Moreover, there is a control group who did not get any treatment.

As of the deliberative moral reasoning of accounting students treated as corporate

accountants, it is measured by Fleming et al.‟s adaptation of Accounting Ethical Dilemma

Instrument (AEDI) developed by Thorne. This instrument consists of four different cases which

capture elements of the standards of ethical practice-competence, confidentiality, integrity, and

credibility-set forth in the IMA Statement of Ethical Professional Practice (Institute of

Management Accountants [IMA], as cited in Fleming et al., 2009). Furthermore, each of them

shows the ethical dilemma faced by a corporate accountant and has questions related to how

they believe “the accountant described in the case would realistically respond, taking into

consideration the pressures and tradeoffs that influence accountants‟ behaviors on the job”

(Thorne, as cited in Fleming et al., 2009).

After reading the cases, participants in both groups rated the importance of predetermined

12 items for consideration on five-point scales (SangatPenting, Penting, CukupPenting,

AgakPenting, danTidakPenting). In each case‟s items for considerations, there are three items

representing principled moral development. Afterwards, the participants ranked in order of

decreasing importance the four most important considerations to a realistic response to the

ethical dilemma (Fleming et al., 2009). Each participant‟s DP-SCORE was then calculated by

adding the points assigned to the principled items for consideration based on the rankings for

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each case (4 points for first rank, 3 points for second rank, 2 points for third rank, and 1 point

for fourth rank) and converting the participant‟s total points to a percentage of total possible

points (Thorne, as cited in Fleming et al., 2009). The total scores provided an insight the extent

to which each participant‟s deliberative moral reasoning affects his/her real action when facing

a grey area of ethics. Further analysis examines the significance of Levinas‟ work on the

deliberative moral reasoning of accounting students.

RESULTS

Descriptive Statistics

Descriptive statistics summarizes the mean, standard deviation, minimum, and maximum

of the samples being studied.

Table 1

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

DPScore1 18 12.50 40.00 25.5556 7.55157

DPScore2 18 2.50 37.50 16.1111 8.36758

Valid N (listwise) 18

The results of the descriptive statistics presented in the Table 4.1.1 describe that there are

36 samples in this research, divided equally to a treatment group (denoted as Group 1) and to a

control group (denoted as Group 2). The deliberative moral reasoning (denoted as DPScore) of

Group 1 has a minimum of 12.50 and a maximum of 40.00, with a mean of 25.5556. On the

other hand, the DPScore of Group 2 shows a minimum of 2.50, a maximum of 37.50, and a

mean of 16.1111.

From the results above, it can be noted that the deliberative moral reasoning of the

treatment group is, on average, higher than that of the control group.

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Normality Test

Since the data used in this research are ratio data, then a normality test on the data should

be carried out to meet another parametric assumption. Thus, the Kolmogorov-Smirnov test is

conducted. If the value of K-S significance is greater than the significance level (α) of 0.05,

thus, data are normally distributed. The results of this test are as follows.

Table 2

Test Statisticsa

DPScore

Most Extreme Absolute .556

Differences Positive .000

Negative -.556

Kolmogorov-Smirnov Z 1.667

Asymp. Sig. (2-tailed) .008

a.Grouping Variable: Group

The test statistic table indicates that the probability of the Kolmogorov-Smirnov Z

statistic falls below the significance level of 0.05, that is, 0.008. It means that the distributions

of the two groups are significantly different from each other, thus, the null hypothesis stated

that data are normally distributed is rejected.

The Mann-Whitney Test

As data are not normally distributed, then a nonparametric test of two independent-

samples, which is Mann-Whitney test, is used.

Table 3

Ranks

Group N Mean Rank Sum of Ranks

DPScore 1 18 24.31 437.50

12

2 18 12.69 228.50

Total 36

Table 4

Test Statisticsb

DPScore

Mann-Whitney U 57.500

Wilcoxon W 228.500

Z -3.320

Asymp. Sig. (2-tailed) .001

Exact Sig. [2*(1-tailed Sig.)] .001a

a. Not corrected for ties

b. Grouping Variable: Group

The Mann-Whitney test results as shown in Table 4.4 indicate that there is a significance

difference between both groups. That is, the treatment group exhibited a significantly higher

deliberative moral reasoning than the control group. It is explained by the fact that the test

shows a significance value of 0.001, which is less than the significance level of 0.05. Therefore,

the hypothesis of this study is accepted.

The Independent-Samples T Test

Nevertheless, even though the normality test failed to prove that the data used in this

study are normally distributed, but by referring to the Central Limit Theorem, the data of more

than 30 can be regarded as normally distributed data. Hence, this research performs a

parametric test to draw a conclusion about whether or not the hypothesis is accepted. Analytical

technique used for this study is the independent- samples t-test by utilizing SPSS 15.0. The

independent-samples t-test is conducted to see if there are any significant differences in the

means for two groups in the variable of interest (Sekaran&Bougie, 2010). In this research, the

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means of deliberative moral reasoning from a treatment group and a control group were tested

to see whether there is a significant mean difference between them.

Table 5

Group Statistics

Group N Mean Std. Deviation Std. Error Mean

DPScore 1 18 25.5556 7.55157 1.77992

2 18 16.1111 8.36758 1.97226

Table 6

Independent Samples Test-

Levene’s Test for Equality of Variances

F Sig.

DPScore Equal variances assumed .003 .955

Equal variances not assumed

Table 7

Independent-Samples Test-

T Test for Equality of Means

T

Df

Sig.

(2-tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

3.555 34 .001 9.44444 2.65667 4.04543 14.84346

3.555 33.648 .001 9.44444 2.65667 4.04335 14.84554

Since the significance value of Levene‟s test is 0.955 (p > 0.05), therefore, it can be

assumed that the variances are approximately equal. Furthermore, the t-test results in t value of

3.555 on sig (α) 5% with 34 degrees of freedom. The significance of 0.001, which is less than

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0.05, implies that there is a significant difference between both groups. People in the treatment

group had significantly higher deliberative moral reasoning than those in the control group.

Thus, the hypothesis stated previously that there is a significant difference on the deliberative

moral reasoning between accounting students who get Levinas‟ treatment and those who do not

is accepted.

DISCUSSION

The results of parametric test and nonparametric test above stated that there is a

significant difference between accounting students in the treatment group and those in the

control group. It is indicated by the Mann-Whitney‟s significance value of 0.001. In addition to

that, the same significance value of 0.001 is also provided by the independent-samples t-test.

Both of them are less than the significance level of 0.05, therefore, it can be implied that there

is a significant difference between deliberative moral reasoning in both groups. Moreover, the

results suggest that accounting students in the treatment group exhibited a higher level of

deliberative moral reasoning than those in the control group did.

Although as far as researcher aware that there is not any research trying to analyze the

significance of Levinas‟ perspective on the deliberative moral reasoning of accounting students

in corporate accounting scheme before, but there are some logical reasons why Levinas‟ work

may have a significant effect on their moral reasoning.

In regards to what Aasland (2009) said, the reason why it may happen is because there is

a tendency that people in general resist the temptation to always maximize gains for

themselves, an idea which dominates the economy world. There is something humanity which

triggers the actions of being ethical and responsible for the sake of the others, that needs no

reason. Due to the faculty to be conscious about themselves and reflect upon themselves that

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each human has, people may do otherwise than pursue their self-interests. Henceforth, by

realizing that they encounter with the Other, and also the third, the fourth, etc., they will strive

for more justice in their actions. In addition, by valuing that each individual is unique, they

become more objective. That, along with the ability to place the Other before the self, is

somehow in line with post-conventional moral stage in the Kohlberg‟s model used in this

study. That is why Levinas‟ perspective is able to be applied in business and enhance the

deliberative moral reasoning of accounting students who might become corporate accountants

in the near future.

CONCLUSIONS, LIMITATIONS, AND SUGGESTIONS

The objectives of this research were to analyze empirically (1) the ethical decision

process of accounting students treated as corporate accountants by measuring the deliberative

moral reasoning they apply to the resolution of a grey area of ethics and; (2) the significance of

Levinas‟ perspective on the deliberative moral reasoning of accounting students in corporate

accounting scheme. Treating undergraduate accounting students enrolled in FEB UGM as

corporate accountants facing ethical dilemmas, the results of this study show statistically that

there is a significance difference in the deliberative moral reasoning exhibited by accounting

students assigned in the treatment group and those in the control group. More specifically, the

treatment group who receiving Levinas‟ treatment, showed significantly higher DP-Score

(deliberative moral reasoning score) when facing ethical dilemmas than those in the control

group and received no treatment at all.After reviewing the statistical facts, the researcher may

conclude that Levinas‟ perspective of putting the Other before the self as well as core

responsibility for others was proven to be able to enhance their deliberative moral reasoning.

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The implications of this study are limited by research design in general. More

specifically, it is in regards to the scope and number of samples which were limited to only 36

accounting students in their third year and fourth year enrolled in FEB UGM Yogyakarta.

Therefore, the result of this study could not be generalized into all situations. Secondly, the

experiments were carried out in the end of classes, by asking permission from the lecturers. So

that, extraneous variables from either internal of the subjects being studied or the environment

might influence the outcome of the experiments.

Future studies might include more samples of accounting students from several

universities so as to get broader scope. In addition, future research are also suggested to carry

out a class which is really designed for experiment purpose in order to minimize or even

eliminate the chance of extraneous variables to be able to effect the outcome of the experiment.

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APPENDIX

APPENDIX A

I. Descriptive Statistics

Table 1

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

DPScore1 18 12.50 40.00 25.5556 7.55157

DPScore2 18 2.50 37.50 16.1111 8.36758

Valid N (listwise) 18

II. Normality Test

Table 2

Test Statisticsa

DPScore

Most Extreme Absolute .556

19

Differences Positive .000

Negative -.556

Kolmogorov-Smirnov Z 1.667

Asymp. Sig. (2-tailed) .008

a.Grouping Variable: Group

III. The Mann-Whitney Test

Table 3

Ranks

Group N Mean Rank Sum of Ranks

DPScore 1 18 24.31 437.50

2 18 12.69 228.50

Total 36

Table 4

Test Statisticsb

DPScore

Mann-Whitney U 57.500

Wilcoxon W 228.500

Z -3.320

Asymp. Sig. (2-tailed) .001

Exact Sig. [2*(1-tailed Sig.)] .001a

a. Not corrected for ties

b. Grouping Variable: Group

IV. The Independent-Samples T Test

Table 5

Group Statistics

20

Group

N

Mean

Std.

Deviation

Std. Error

Mean

DPScore 1 18 25.5556 7.55157 1.77992

2 18 16.1111 8.36758 1.97226

Table 6

Independent Samples Test-

Levene’s Test for Equality of Variances

F Sig.

DPScore Equal variances

assumed

.003 .955

Equal variances not

assumed

Table 7

Independent-Samples Test-

T Test for Equality of Means

t

Df

Sig.

(2-tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

3.555 34 .001 9.44444 2.65667 4.04543 14.84346

3.555 33.648 .001 9.44444 2.65667 4.04335 14.84554

APPENDIX B

RESEARCH INTRUMENT*partial

21

TREATMENT GROUP

BAGIAN I

Kasus Financial Fraud PT XYZ*

PT XYZ adalah sebuah perusahaan publik yang menjual perangkat lunak dan berbasis

di Jakarta. Pada tahun 200X, publik digemparkan oleh adanya sebuah kasus financial fraud

yang membawa nama perusahaan tersebut. Menurut keterangan resmi yang dirilis oleh media,

tujuan dari fraud tersebut adalah untuk meningkatkan pendapatan dan harga saham perusahaan.

Untuk mencapai tujuan ini, PT XYZ sengaja menyusun laporan keuangan yang secara material

tidak wajar selama 11 kuartal secara berturut-turut, antara bulan April 199X hingga Desember

200X.

Aksi kecurangan tersebut dilakukan oleh beberapa karyawan dan manajemen tingkat

atas dengan melaporkan pendapatan senilai ratusan juta terkait dengan kontrak tidak mengikat

(non-binding arrangement) dengan pelanggan, yang tidak sesuai dengan PABU. PT XYZ

kemudian berusaha menutupi kecurangan tersebut dengan melakukan berbagai aksi lain seperti

membukukan kontrak tersebut. Seperti yang sudah dapat diprediksi, para pelanggan tidak

membayar, sehingga rekening piutang di neraca menggelembung. Untuk membuat piutang

seakan tertagih dengan cepat, manajer senior di PT XYZ melakukan transaksi dengan sebuah

bank untuk dapat menukarkan piutang dengan kas. PT XYZ mencatat transaksi ini sebagai

penjualan piutang dan menghilangkannya dari neraca perusahaan.

Ada tiga masalah dalam kontrak ini. Pertama, PT XYZ sudah memberikan bank

tersebut recourse (jaminan bahwa apabila timbul default dalam pembayaran piutang, maka

bank dapat menagih pembayarannya kepada PT XYZ) dan membayar atau membeli kembali

piutang yang tidak terbayarkan tersebut. PT XYZ seharusnya mencatat kontrak tersebut sebagai

pinjaman dan tetap meninggalkan piutang di neraca. Kedua, beberapa piutang yang “dijual”

tersebut tidak valid karena para pelanggan tidak diwajibkan untuk membayar. Ketiga, beberapa

nota yang “dijual” tersebut palsu. Karyawan senior berusaha menyembunyikan kecurangan

tersebut dengan cara writing-off rekening piutang. Kasus financial statement fraud ini

menyebabkan harga saham PT XYZ anjlok hingga akhirnya PT XYZ bangkrut dan para

stakeholders dirugikan.

22

Kasus financial fraud PT XYZ atau bahkan kasus-kasus serupa yang terjadi di

perusahaan lain tentunya tidak akan terjadi apabila pihak manajemen maupun karyawan tidak

menghalalkan segala cara agar harga saham dan pendapatan meningkat, atau agar kinerjanya

terlihat baik. Walaupun pada akhirnya mereka akan dihadapkan pada beberapa pilihan dalam

proses pengambilan keputusan, namun seharusnya mereka tidak mengambil keputusan yang

hanya menguntungkan diri mereka sendiri maupun perusahaan, ataupun hanya melihat

konsekuensi dari keputusan mereka terhadap perusahaan saja. Mereka seharusnya sadar bahwa

keputusan yang akan diambilnya adalah respons terhadap tanggung jawab mereka terhadap

banyak pihak (stakeholders/pemangku kepentingan secara luas), bukan hanya terhadap para

pemegang saham saja. Hal tersebut akan menyebabkan mereka mampu menempatkan

kepentingan orang lain di atas kepentingan sendiri. Selain itu, mereka akan mempertimbangkan

adanya keberadaan pihak-pihak lain yang berkepentingan guna mencari lebih banyak keadilan

(justice) bagi semua pihak.

*kasus diadaptasi dari kasus Peregrine System, Inc.

Sumber:

Editor.(2003). United States District Court for the Southern District of California.Retrieved

from http://www.sec.gov/litigation/complaints/comp18205.htm.

Pernyataan

1. Manipulasi terhadap laporan keuangan fair untuk dilakukan demi kepentingan

para pemegang saham (shareholders).

2. Apabila Anda bertindak sebagai pihak manajemen, maka dalam suatu proses pengambilan

keputusan, Anda akan menempatkan kepentingan para pemangku kepentingan (creditor,

customer, masyarakat, pemerintah, dan lain-lain) di atas kepentingan Anda dan perusahaan.

3. Kebebasan Anda dalam mengambil suatu keputusan bisnis dibatasi oleh adanya

pertimbangan atas keberadaan pihak-pihak lain yang berkepentingan (investor, creditor,

STS TS N S SS

STS TS N S SS

23

customer, masyarakat, pemerintah, dan stakeholder lainnya) dan akan terkena dampak dari

keputusan yang akan Anda ambil.

BAGIAN II

Kasus Perusahaan

Alice dan Perusahaan ABC

Alice adalah seorang staf akuntan dan CMA (Certified Management Accountant) di

Perusahaan ABC.Perusahaan tersebut mengembangkan sistem akuntansinya sendiri dengan

bantuan konsultan. Sistem yang diberi namaACME Accounting System tersebut mulai

dioperasikan tahun ini, sesaat sebelum perusahaan mempekerjakan Alice. Sebagai bagian dari

tugas Alice, Alice diminta oleh bosnya untuk mengevaluasi quality control sistem akuntansi itu

sebagai persiapan untuk audit tahunan perusahaan. Alice menemukan beberapa kelemahan

pengendalian yang parah di dalam sistem ACME. Sebelum memberikan laporan ke pihak

manajemen ABC, Alice diberitahu oleh bosnya untuk memodifikasi komentar negatif terkait

dengan sistem akuntansi ACME dan untuk menunggu dan melihat saja jika auditor menemukan

suatu masalah.

Secara realistis, apakah Alice seharusnya mengubah laporannya? (Berilah tanda √ pada

satu pilihan yang tersedia di bawah)

____ Sebaiknya mengubah laporannya ____ Tidak dapat memutuskan

____ Tidak mengubah laporannya

Di dalam proses memberikan nasihat untuk Alice, apakah sebaiknya dia mengubah

laporannya atau tidak, ada banyak hal yang harus dipertimbangkan. Di bawah ini adalah daftar

beberapa hal yang dapat menjadi pertimbangan. Berikanlah suatu penilaian akan pentingnya

masing-masing pertimbangan di bawah ini:

STS TS N S SS

24

Skala Kepentingan

SP P CP AP TP

1. Apakah kelemahan pada sistem ACME dapat

diperbaiki dengan mudah, yakni dengan

mengimbangi pengendalian yang lain.

2. Apakah pegawai yang baik itu adalah pegawai yang

tunduk pada keputusan atasannya.

3. Apakah pekerjaan Alice dapat terancam jika dia

menolak merevisi laporannya.

4. Apakah pertimbangan yang wajar mengenai posisi

keuangan perusahaan dapat digunakan untuk

memprediksi reputasi professional.

5. Apa yang terbaik untuk perusahaan Alice.

6. Apakah Alice memiliki tugas untuk memastikan

bahwa laporan itu akurat.

7. Apa nilai potensial dari suatu audit independen

sebagai pengganti penilaian terbaru masyarakat

mengenai nilai perusahaan.

8. Bagaimana masyarakat seharusnya dilayani.

9. Apakah perusahaan benar-benar peduli dengan

pengendalian internal atau apakah yang mereka

benar-benar inginkan hanya opini audit yang bersih.

10. Akankah dengan mengubah laporan konsisten

dengan apa yang Alice pikir benar.

11. Tindakan Alice apa yang akan diharapkan rekan-

rekan kerja Alice di perusahaan.

12. Apakah faktor-faktor yang relevan dalam

menentukan tanggung jawab professional Alice.

25

Taman KT I/466●Yogyakarta, Indonesia55133●081215701870●kiasayudamara@gmail.com

KIAS AYUDAMARA

Personal Information

Date of Birth : May 9th, 1989

Place of Birth : Yogyakarta, Indonesia

Marital Status : Single

Nationality : Indonesian

Education

Degrees November 2011— June 2012

Uppsala University, Sweden Lotus Erasmus Mundus Exchange Program

September 2009— February 2010

Hiroshima University of Economics, Japan

Short Term Exchange Program

July 2007— November 2011 UniversitasGadjahMada, Indonesia

Bachelor Degree in Accounting with Cumulative GPA of 3.74 out of 4.00 Scale

June 2004— July 2007 SMA N 1 Yogyakarta High School Diploma

Professional Experience

February 2011— July 2011 Faculty of Economics and Business, UniversitasGadjahMada

Yogyakarta, Indonesia

Lecture‟s Assistant for Accounting Principles I and Business Ethics Courses

Responsible for grading and tutoring.August 2010— January 2011

Faculty of Economics and Business, UniversitasGadjahMada

Yogyakarta, Indonesia

Lecture‟s Assistant for Advanced Financial Accounting I and Advanced Accounting II

Courses

Responsible for grading and tutoring.

26

Other Experiences

January 2011— February 2011

ACICIS Buddy Program Yogyakarta, Indonesia

Assisting the incoming international students finding their housings and introducing local

culture and environment to them. July 2010— August 2010 UGM Community Service Magelang, Indonesia

The program was conducted in order to help the local people in TersanGede Village,

Magelang, improve their ways of making use of coconut products mainly by giving them

some kind of workshops of how to make by-products of coconuts. I was acting a treasurer

for various subunit activities and as a coordinator for social events held during the

meantime.March 2010— April 2010 Voluntary Work Yogyakarta, Indonesia

Giving English lesson for orphans at one of orphanages in Yogyakarta. September 2009— February 2010 Community Service Yogyakarta, Indonesia

Responsible for teaching English at local elementary school and organizing social

activities with Gion Community Center, Hiroshima.

Awards

Lotus Erasmus Mundus Scholarship, November 2011-May 2012

PPA (Academic Achievement Improvement) Scholarship, January 2010-Desember 2011

JASSO (Japan Student Services Organization) Scholarship, September 2009-February

2010

Skills

Computer Skills: Microsoft Office (Word, Excel, Power Point), Photoscape

Language Skills: Indonesian (native speaker), English (fluent-received from either formal

or non-formal education), Japanese (basic)

Personal Interests

Travelling

Reading and writing

Photography

27

SUPRIYADI

Associate Professor

E-mail: pri@mmugm.ac.id

EDUCATION

1) 1988 Undergraduate Degree in Accounting (Drs.),

Faculty of Economics, Universitas Gadjah

Mada

2) 1993 Master of Science in Accounting at the

University of California, Fresno, USA

3) 1998 Doctoral Degree in Accounting at the

University of Kentucky, USA

RESEARCH

INTERESTS

1. Financial Accounting

2. Behavioral Accounting

3. Business and Professional Ethics

COURSE TAUGHT

Introductory Accounting I (Undergraduate Program)

Intermediate Accounting I (Undergraduate Program)

Behavioral Accounting (Master of Science Program)

Business and Professional Ethics (Master of Applied Program)

Behavioral Research in Accounting (Doctorate Program)

PROFESSIONAL

ORGANIZATION

MEMBERSHIP

The Indonesian Institute of Accountant

A Member of Appealing Committee (2006-2011)

The Head of Yogyakarta Branch (2011-2016)

INTELLECTUAL

CONTRIBUTION1

Peer Reviewed Journal

1. 2011 Exploring the Model of Internet Use: Indonesian

Contect. Co-Author, Published in UTCC-

International Journal of Business and Economics

(Thailand), Vol. 3, No. 1

2. 2010 The Moderating Effect of Procedural Justice on the

Effectiveness of the Balanced Scorecard

1 For each of the intellectual contributions, please categorize whether the intellectual contribution is

Learning and Pedagogical Research (contribution influence the teaching-learning activities of the school), or Contributions for Practice (influence professional practice in the faculty member’s field), or Discipline-based Research (contributions add to the theory or knowledge base of the faculty member’s field).

28

Performance Measures in Improving Managerial

Performance through Organizational Commitment.

Gadjah Mada International Journal of Business,

Vol. 12.No. 3

3. 2005 Analisis Moderasi Set Kesempatan Investasi

Terhadap Hubungan Antara Kebijakan Deviden

dan Aliran Kas Bebas dengan Tingkat Leverage

Perusahaan (Moderation Analysis on Investment

Opportunity toward The Relationship Between

Dividend Policy and Free Cash Flow with

Company‟s Leverage Level). Co-Author,

Published in Jurnal Ekonomi dan Bisnis, Vol. X1

No. 2

4. 2005 The Influence of Contingency Factor as

Moderating Variable to the Relation between

Users‟ Participation and the Success of

Information System in PTP Nusantara – XIV

(Persero). Co-author. Published in Jurnal

Sosiosains Vol. 18, No. 1

5. 2005 Pengaruh Krisis Moneter terhadap Nilai Tambah

Informasi Arus Kas (The Influence of Monetary

Crisis on the Value Added of Cash Flow

Information). Co-author. Published in Jurnal

Akuntansi & Investasi, Vol. 6, No. 1

6. 2003 Executive Involvement and Participation in the

Management of Information System. Co-author.

In: Jurnal Sosiohumanika, Vol. 16A, No. 3

Research Monograph

1. 2011 Examining Order Effect and Response Mode on

Investment Judgment. Co-Author. Presented in the

peer-reviewed international conference in

29

Amsterdam, The Netherland 2012.

2. 2011 The Effectiveness of Flexible Working

Arrangement and Stress Management Training in

Mitigating Auditors‟ Burnout: An Experimental

Study. Co-Author. Presented in the peer-reviewed

international conference in Melbourne, Australia

2012.

3. 2010 Culture and Effectiveness of Good Corporate

Governance Implementation: Indonesian Case

Study. Research Project sponsored by POSCO

South Korea (Peer-reviewed Research

Competition). Co-Author.

PROFESSIONAL

QUALIFICATION

Professional Experience2

1. 2008 – present Director of Master of Science and

Doctorate Programs, FEB, Universitas

Gadjah Mada

2. 2011 – present Head of the Indonesian Accounting

Association – Yogyakarta Branch

3. 2007 – 2011 A Member of the Appealing Committee

of the Indonesian Accounting

Association

4. 2007 – 2008 Associate Dean for Academic Affairs,

FEB, Universitas Gadjah Mada

5. 2004 – 2007 Director of Master of Management

Program, Universitas Gadjah Mada

6. 2003 – present Editorial Board Member, Jurnal

Manajemen Akuntansi dan Sistem

Informasi MAKSI, Master of Science in

Accounting Program, Diponegoro

2 Position hold in a company or organization as BoD, Commissioner, etc. OR Position hold in profession

organization

30

University, Semarang

7. 2003 – present Editorial Board Member, Jurnal Telaah

dan Riset Akuntansi, Syiah Kuala

University, Banda Aceh

8. 2000 – present Managing Director, Gadjah Mada

International Journal of Business,

Master of Management Program,

Universitas Gadjah Mada

9. 2000 – present Editorial Board Member, Jurnal Bisnis

dan Akuntansi, STIE Trisakti, Jakarta

10. 2000 – present Editorial Board Member, The Journal of

Accounting, Management, and

Economics Research, Faculty of

Economics UTY, Yogyakarta

11. 2000 – present Editorial Board Member, Media Riset

Akuntansi, Auditing, dan Informasi,

Trisakti University, Jakarta

12. 2000 – present Editorial Board Member, Indonesian

Management and Accounting Research,

Trisakti University, Jakarta

Yogyakarta, June 26, 2012

Supriyadi

31

STATEMENT

I confirm that this article has not been previously published elsewhere, nor is it

under consideration by any other publisher.

Yogyakarta, 30 June 2012

First Author

KiasAyuDamara