The Influence of Understanding the Accountant’s Professional Code of Ethics, Intellectual Intelligence, and Ethics Education on Auditor Ethical Behavior at Public Accounting Firms in East Jakarta and South Jakarta

Abstract

Purpose:

This study aims to examine the influence of understanding the accountants' professional code of ethics, intellectual intelligence, and ethics education on the ethical behavior of auditors. The study is motivated by the increasing number of ethical violations in the auditing profession despite the implementation of professional ethical standards and ethics education, highlighting the need to identify the factors that promote ethical behavior among professional auditors.

Design/methodology/approach:

This research employed a quantitative associative research design using a survey method. Primary data were collected through structured questionnaires distributed to auditors working at Public Accounting Firms (KAP) in East Jakarta and South Jakarta. Respondents were selected using a purposive sampling technique based on predetermined criteria. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3, including assessments of the measurement model, structural model, and hypothesis testing through the bootstrapping procedure.

Findings:

The findings reveal that understanding the accountants' professional code of ethics, intellectual intelligence, and ethics education each have a positive and statistically significant influence on auditors' ethical behavior. Among these variables, understanding the professional code of ethics demonstrates the strongest influence. Furthermore, the structural model explains 54.2% of the variance in auditors' ethical behavior, indicating that the proposed model has satisfactory explanatory and predictive power.

Practical implications:

Theoretically, this study extends the application of the Theory of Planned Behavior by demonstrating that cognitive, educational, and ethical factors significantly shape auditors' ethical behavior. Practically, the findings provide valuable insights for Public Accounting Firms, professional accounting organizations, and higher education institutions to strengthen ethics education, enhance auditors' understanding of the professional code of ethics, and develop intellectual competencies as strategic efforts to improve ethical conduct within the auditing profession.

Originality/value:

This study contributes to the literature by examining the combined effects of understanding the professional code of ethics, intellectual intelligence, and ethics education on the ethical behavior of professional auditors rather than accounting students. Focusing on auditors employed in Public Accounting Firms in East Jakarta and South Jakarta provides empirical evidence from real professional settings, addressing the limited research on practitioner-based ethical behavior in the Indonesian auditing context.

Paper type: empirical/review/conceptual and viewpoints