Abstract

This research aims to improve public confidence in the credibility of accountants. The involvement of professional accountants in some cases financial reporting proved to be detrimental to the public at large and potentially reduce the credibility of accountants. To prevent the recurrence of similar cases in the future, then the preventive efforts should be made early on that in college because of accounting students are candidates for professional accountants in the future. Accounting colleges need to improve the structure of the curriculum by providing more servings to the problem of moral ethics.

The study was conducted on two groups of respondents, academics (students and professors of accounting), as well as practitioners (public accountants and management accountants) in East Java. Data is primary, obtained through questionnaires, analyzed using a technique independent sample T-test and Regression Analysis.

The study concluded that academics perceive the credibility of accountants better than the practitioners. In deciding the accounting policies, academics more moral scenarios taking into account the magnitude of the consequences and social consensus. Meanwhile, practitioners tend to take advantage of the flexibility of financial reporting as a loophole to gain managerial. Understanding of the professional code of ethics is creative accounting practices and good corporate governance principles proven to affect the credibility of the accountant.

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