The Importance of Islamic Ethics in Accounting Practices / Siti Nor Syazana binti Adis

Submitted in partial fulfillment of the requirements for the degree of Bachelor of Business in Accounting and Information Systems.

ABSTRACT

Despite the codification of different rules, regulations, standards and bylaws as well as punishments, misuse and unprofessional ethics are evident in accounting. The reason of this problem has always been discussed. This paper aim to determine the importance of Islamic ethics in accounting practice. In particular, the paper analyzes the role of Islamic ethics and its application. This paper has reviewed the literature on the Islamic ethics and ethical accounting practice then found out the four critical areas of Islamic ethics such as principles of Islamic ethics, accounting and education, code of ethics for accountants and application of Islamic ethics for accountants. This study concludes that an Islamic guideline for accountants is a driver of ethical behavior to comply with the Islamic principles. It is highly needed in current turbulence business environment and competitors' pressure. Islamic ethics can be used by Muslim accountant as a reference to ensure the excellent audit work to comply with Shari'ah requirements and to provide the required information needed by society such as by doing goodness, righteousness, equilibrium and justice, trust, benevolence and others. The understanding and application of Islamic ethics contribute towards a more ethical accounting practice.