Article Sidebar

Download
PDF

Main Article Content

Abstract

This study aims to deconstruct the hegemony of manipulation culture in global and national financial reporting practices occurring over the past decade. It proposes Islamic Ethics as a fundamental antithesis to restore accounting integrity. This research employs a non-positivist paradigm with a critical study approach. Data analysis was conducted using the dialectical method to juxtapose the reality of manipulation (thesis) against Islamic values (antithesis) to generate a new synthesis. The critical analysis identifies three dimensions of the failure of amanah (trust). First, ontologically, modern financial statements have become entrapped in a simulacrum (hyperreality); Islamic ethics deconstructs this through the concepts of al-haqq and the prohibition of tadlis, demanding that financial statements serve as a document of syahadah (testimony). Second, epistemologically, the instrumental rationality of homo economicus has proven ineffective at preventing fraud; Islam offers the epistemology of muraqabah (inherent divine supervision), which dismantles the rationalization of fraud. Third, axiologically, the hegemony of profit maximization is replaced by the synthesis of barakah (blessing) based on maslahah as an indicator of sustainable performance. This research concludes that a shift from horizontal accountability to Transcendental Accountability is necessary. The accounting profession must transform from mere record-keepers into guardians of amanah who hold their integrity accountable to God, transcending mere compliance with formal regulations.

Keywords

Critical Accounting Islamic Ethics Financial Statement Manipulation Amanah Muraqabah

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Haryani, S., Alimuddin, A., & Darwis, D. (2025). Islamic Ethics as the Antithesis of Manipulation Culture: A Critical Study on the Failure of Trust (Amanah) in Financial Reporting Practices. Amkop Management Accounting Review (AMAR), 5(2), 1513–1539. https://doi.org/10.37531/amar.v5i2.3396
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abdullah, W. A. W., & Al-Aali, H. (2018). The destruction of the fraud triangle: A critical perspective. Journal of Financial Crime, 25(2), 300–312.
  2. Abriatika, F. N., & Mutmainah, S. (2022). Faktor yang Mempengaruhi Kecurangan Laporan Keuangan di Badan Usaha Milik Negara Indonesia [Factors Affecting Financial Statement Fraud in Indonesian State-Owned Enterprises]. E-Jurnal Akuntansi, 32(12), 3567. https://doi.org/10.24843/eja.2022.v32.i12.p07
  3. Agustia, D. (2020). The influence of financial distress on earnings management. Journal of Security and Sustainability Issues, 9(3), 779–790.
  4. Ahiawodzi, A. K., & Adade, T. C. (2012). Access to credit and growth of small and medium-scale enterprises in the Ho Municipality of Ghana. British Journal of Economics, Finance, and Management Science, 6(2), 34–51.
  5. Akerlof, G. A. (1970). The Market for "Lemons": Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics, 84(3), 488–500.
  6. Alexander, N., & Jenth, S. (2021). The Wirecard Scandal: A German Trauma. Intereconomics, 56(1), 58–62.
  7. Al-Faruqi, I. R. (1992). Al-Tawhid: Its Implications for Thought and Life. Herndon: IIIT.
  8. Alvesson, M., & Deetz, S. (2000). Doing Critical Management Research. London: Sage Publications.
  9. Andrew, J., & Baker, M. (2020). The generalizability of the specific: Critical accounting research and the neoliberal state. Critical Perspectives on Accounting, 69, 102096. https://doi.org/10.1016/j.cpa.2019.102096
  10. Aribi, Z. A., Arun, T., & Gao, S. S. (2019). Sustainability reporting and value relevance: Evidence from Islamic banks. Journal of Islamic Accounting and Business Research, 10(2), 204–219.
  11. Asutay, M., & Hudanah, E. (2019). Maqasid al-Shari’ah based performance measurement for the Islamic banking sector. International Journal of Islamic and Middle Eastern Finance and Management, 12(4).
  12. Balakrishnan, K., Core, J. E., & Verdi, R. S. (2014). The relation between financial reporting quality and financing decisions. The Accounting Review, 89(1), 1–28
  13. Baudrillard, J. (1981). Simulacra and Simulation. Ann Arbor: University of Michigan Press.
  14. Beatty, A., & Liao, S. (2014). Financial accounting in the banking industry: A review of the empirical literature. Journal of Accounting and Economics, 58(2-3), 339–383.
  15. Bedoui, H. E., & Mansour, W. (2015). Performance and Maqasid al-Shari’ah’s Pentad Theory. Humanomics, 31(4), 395–406.
  16. Beekun, R. I., & Badawi, J. A. (2005). Balancing Ethical Responsibility among Multiple Organizational Constituencies: A Tauhidic Perspective. Journal of Business Ethics, 60, 131–145.
  17. Brochet, F., Loumioti, M., & Serafeim, G. (2015). Speaking of the short-term: Disclosure horizon and managerial myopia. Review of Accounting Studies, 20(3), 1122–1163.
  18. Burrell, G., & Morgan, G. (1979). Sociological Paradigms and Organisational Analysis. London: Heinemann.
  19. Carson, E., Simnett, R., & Vanstraelen, A. (2020). Auditing in Emerging Markets. Auditing: A Journal of Practice & Theory, 39(1), 12–34.
  20. Catchpowle, L., & Smyth, S. (2016). Accounting and social movements: An exploration of the potential for transformative accounting. Accounting Forum, 40(3), 220–234.
  21. Chabrak, N., Cooper, D. J., & Daidj, N. (2016). The role of accounting in the financial crisis: A critical perspective. Accounting Forum, 40(4), 239–243.
  22. Chapra, M. U. (1992). Islam and the Economic Challenge. Leicester: The Islamic Foundation.
  23. Chen, J., Chan, K. C., Dong, W., & Zhang, F. (Frank). (2015). Internal Control and Stock Price Crash Risk: Evidence from China. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2683714
  24. Christensen, H. B., Hail, L., & Leuz, C. (2016). Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement. The Review of Financial Studies, 29(11), 2885–2924
  25. Cho, C. H., Laine, M., Roberts, R. W., & Rodrigue, M. (2015). Organized hypocrisy, organizational façades, and sustainability reporting. Accounting, Organizations and Society, 40, 78–94.
  26. Chua, W. F. (1986). Radical developments in accounting thought. The Accounting Review, 61(4), 601–632.
  27. Chwastiak, M. (2015). Teaching capitalism to the shareholders of the future: The role of accounting education. Critical Perspectives on Accounting, 28, 67–69.
  28. Cohen, D., Mashruwala, R., Zach, T., Bartov, E., Beatty, A., Beneish, M., Brown, L., Byard, D., Chamberlain, S., Darrough, M., Dietrich, R., Dopuch, N., Easton, P., Frankel, R., Hansen, J., Huddart, S., Jorgensen, B., Klein, A., Leone, A., & Zimmerman, J. (2009). The use of advertising activities to meet earnings benchmarks: Evidence from monthly data. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.1013060
  29. Cooper, D. J., & Sherer, M. J. (1984). The value of corporate accounting reports: Arguments for a political economy of accounting. Accounting, Organizations and Society, 9(3-4), 207–232.
  30. Cressey, D. R. (1953). Other People's Money: A Study in the Social Psychology of Embezzlement. Glencoe, IL: Free Press.
  31. Chwastiak, M. 2015. “Teaching Capitalism to the Shareholders of the Future: The Role of Accounting Education.” Critical Perspectives on Accounting 28: 67–69 Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants, and their consequences. Journal of Accounting and Economics, 50(2), 344–401.
  32. Denzin, N. K., & Lincoln, Y. S. (2011). The SAGE Handbook of Qualitative Research. Sage.
  33. De Villiers, C., Rinaldi, L., & Unerman, J. (2014). Integrated Reporting: Insights, gaps and an agenda for future research. Accounting, Auditing & Accountability Journal, 27(7), 1042–1067
  34. Dillard, J., & Vinnari, E. (2019). Critical dialogical accountability: From accounting-based accountability to accountability-based accounting. Critical Perspectives on Accounting, 62, 16–38.
  35. DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147–160.
  36. El-Gamal, M. A. (2006). Islamic Finance: Law, Economics, and Practice. Cambridge University Press.
  37. Fogarty, T. J., & Rigsby, J. T. (2016). A distinct lack of passion: The lack of audit firm legitimation in the post-Enron era. Critical Perspectives on Accounting, 34, 1–17.
  38. Gendron, Y. (2018). On the elusive nature of critical (accounting) research. Critical Perspectives on Accounting, 50, 1–12.
  39. Ham, C., Seybert, N., & Wang, S. (2018). Narcissism Is a Bad Sign: CEO Signature Size, Investment, and Performance. Review of Accounting Studies, 23(1), 234–264
  40. Haniffa, R., & Hudaib, M. (2014). Disclosure practices of Islamic financial institutions: An exploratory study. Journal of Islamic Accounting and Business Research, 5(2), 120–143.
  41. Harymawan, I., Nasih, M., Madyan, M., & Sucahyati, D. (2019). The role of political connections on family firms’ performance: evidence from Indonesia. International Journal of Financial Studies, 7(4). https://doi.org/10.3390/ijfs7040055
  42. Healy, P. M. (1985). The effect of bonus schemes on accounting decisions. Journal of Accounting and Economics, 7(1-3), 85–107.
  43. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
  44. Jing, X., & Wang, Y. (2022). Luckin Coffee’s Financial Fraud: The Failure of Internal Control and Ethics. Asian Journal of Business Ethics, 11(1), 231–245.
  45. K, D., & D’souza, Dr. J. J. (2023). A Case of Adani Group Target by Hindenburg Research and its Impact on Shareholders. International Journal of Research Publication and Reviews, 4(12), 2750–2752. https://doi.org/10.55248/gengpi.4.1223.123513
  46. Kabir, M. H. (2018). Accounting Theory and Practice. Dhaka: Ideal Publications
  47. Kamayanti, A. (2016). Metodologi Penelitian Kualitatif Akuntansi: Pengantar Religiositas Keilmuan [Qualitative Accounting Research Methodology: Introduction to Scientific Religiosity]. Malang: Yayasan Rumah Peneleh.
  48. Kamayanti, A. (2019). Liberating accounting from the chains of materialism: A critical review. Journal of Accounting and Investment, 20(3), 1–15.
  49. Kamla, R. (2015). Critical contribution to accounting, and the concept of social justice in the Islamic context. International Journal of Critical Accounting, 7(5-6).
  50. Kamla, R. (2019). Critical perspectives on Islamic accounting: A review and way forward. Critical Perspectives on Accounting, 58, 1–18.
  51. Kanodia, C., & Sapra, H. (2016). A real effects perspective to accounting measurement and disclosure: Implications and insights for future research. Journal of Accounting Research, 54(2), 623–676.
  52. Kim, J. B., Yeung, I., & Zhou, J. (2016). Stock price crash risk and internal control weakness: Presence vs. disclosure. The Accounting Review, 91(4), 1163–1186.
  53. Kusuma, H., & Lutfi, M. (2023). Amanah and the Ethics of Financial Reporting: An Islamic Perspective. Journal of Islamic Monetary Economics and Finance, 9(1), 55–76.
  54. Laldin, M. A., & Furqani, H. (2013). Developing Islamic finance in the framework of maqasid al-Shari‘ah: Understanding the ends (maqasid) and the means (wasa’il). International Journal of Islamic and Middle Eastern Finance and Management, 6(4), 278–289. https://doi.org/10.1108/IMEFM-05-2013-0057
  55. Lehman, G., Annisette, M., & Agyemang, G. (2016). Immigration, race, and accounting. Critical Perspectives on Accounting, 38, 1–14.
  56. Lestari, T. U. (2022). Deteksi Financial Distress dan Manipulasi Laporan Keuangan pada Perusahaan Infrastruktur BUMN Karya. Jurnal Riset Akuntansi dan Keuangan, 10(2), 245–260.
  57. Llewellyn, S. (1993). Narratives in accounting and management research. Accounting, Auditing & Accountability Journal, 12(2), 220–236.
  58. Lokanan, M. E. (2018). Informing the fraud triangle: Insights from fraudsters. Journal of Theoretical Accounting Research, 14(2), 1–23
  59. Macintosh, N. B., Shearer, T., Thornton, D. B., & Welker, M. (2000). Accounting as simulacrum and hyperreality: perspectives on income and capital. Accounting, Organizations and Society, 25(1), 13–50.
  60. Mahdavikhou, M., & Khotanlou, M. (2016). New perspective to human resource management based on Islamic values. Humanomics, 32(1).
  61. Malsch, B., Tremblay, M. S., & Gendron, Y. (2018). Scrutinizing the genuine audit: An investigation of the PCAOB’s inspections. Contemporary Accounting Research, 35(2), 640–666.
  62. Mergaliyev, A., Asutay, M., Avdukic, A., & Karbhari, Y. (2021). Higher Ethical Objective (Maqasid al-Shari’ah) Augmented Framework for Islamic Banks. Journal of Business Ethics, 170, 797–834.
  63. Moleong, L. J. (2014). Metodologi Penelitian Kualitatif. Bandung: Remaja Rosdakarya.
  64. Möllers, T. M. J. (2022). The Wirecard accounting scandal in Germany, and how the financial industry failed to spot it.
  65. Mulawarman, A. D. (2017). Jang Oetama: Jejak Akuntansi Menuju Keabadian. Malang: Yayasan Rumah Peneleh.
  66. Murphy, P. R., & Free, C. (2022). Fraud and the normalization of deviance. Journal of Business Ethics, 178, 1–18.
  67. Nakatani, R. (2019). Firm performance and corporate social responsibility in the Islamic finance industry. Journal of Islamic Accounting and Business Research, 10(4), 571–597.
  68. Napier, C. (2018). Defining Islamic accounting: current issues, past roots. Accounting History, 14(1-2), 121–144.
  69. Nicko Albart, & Marsudi, A. S. (2025). Earnings Management on New Fraud Diamond and Financial Statement Fraud in Indonesian Infrastructure Firms. Jurnal Ilmiah Manajemen Kesatuan, 13(4), 2617–2630. https://doi.org/10.37641/jimkes.v13i4.3451
  70. Ningrum, K., Kusumawardhani, A. P., & Putra3, O. E. (2025). Income Smoothing Drivers: Evidence from Indonesian Heavy Construction & Civil Engineering Sector. Commercium : Journal of Business and Management, 3(3). https://doi.org/10.61978/commercium.v3i3
  71. Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74–95.
  72. Petronila, T. A., Delfiero, N., & Juliana, C. (2025). Capital Intensity, Covenants, Distress, and Pressure: Drivers of Accounting Conservatism. Amkop Management Accounting Review (AMAR), 5(2), 127–144. https://doi.org/10.37531/amar.v5i1.2581
  73. Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. Journal of Business Ethics, 151, 451–471.
  74. Power, M. (2021). Modelling the future: Financial reporting and the 'disruption' of capitalism. Accounting, Organizations and Society, 90, 101201.
  75. Pratama, B. C., Wibowo, H., & Innayah, M. N. (2021). The Reflection of Fraud Triangle in Jiwasraya Insurance Scandal. Jurnal Akuntansi dan Investasi, 22(1), 40–55.
  76. Qimyatussa’adah, Q., Nugroho, S., & Abdullah, L. (2021). A Chronological Review: Jiwasraya. [EAI Conference Proceedings]. https://doi.org/10.4108/eai.4-11-2020.2304546
  77. Rahman, R. A., Anwar, I. S., & Omar, N. (2020). Ethical Values and Earnings Management in Islamic Banks. Journal of Islamic Accounting and Business Research, 11(9), 1785–1805.
  78. Richardson, L. (2000). Writing: A method of inquiry. In Handbook of Qualitative Research (2nd ed., pp. 923–948). Sage.
  79. Roberts, J. (2023). The Tyranny of Metrics and the hollowing out of the profession. Accounting, Auditing & Accountability Journal.
  80. Roychowdhury, S., Shroff, N., & Verdi, R. S. (2019). The effects of financial reporting and disclosure on corporate investment: A review. Journal of Accounting and Economics, 68(2), 101246.
  81. Ruankaew, T. (2016). Beyond the fraud diamond. International Journal of Business Management and Economic Research, 7(1), 474–476.
  82. Sarea, A. (2016). The impact of AAOIFI governance standards on earnings quality. Journal of Islamic Accounting and Business Research, 7(2), 1–15.
  83. Sari, E. G. (2022). Fraud Risk Analysis Fraud Prevention Detection with Fraud Triangle and Financial Ratios at PT. Garuda Indonesia (Persero) Tbk. Asia Pacific Fraud Journal, 7(2), 225. https://doi.org/10.21532/apfjournal.v7i2.269
  84. Schipper, K. (1989). Commentary on earnings management. Accounting Horizons, 3(4), 91.
  85. Schuchter, A., & Levi, M. (2016). The fraud triangle: a critical review. Journal of Money Laundering Control, 19(2), 107–121.
  86. Scott, W. R. (2015). Financial Accounting Theory (7th ed.). Toronto: Pearson.
  87. Sikka, P. (2009). Financial crisis and the silence of the auditors. Accounting, Organizations and Society, 34(6–7), 868–873. https://doi.org/10.1016/j.aos.2009.01.004
  88. Sikka, P. (2015). The role of auditors in the banking crisis: A critical analysis. Accounting, Organizations and Society, 45, 1–19.
  89. Simanjuntak, P. (2019). Kepercayaan Investor dan Stabilitas Pasar Modal Indonesia Pasca Kasus Jiwasraya. Jurnal Pasar Modal dan Perbankan, 8(2), 112–125.
  90. Siregar, S. (2019). Perspektif Hukum Islam mengenai mekanisme manipulasi pasar dalam transaksi saham di pasar modal. Yurisprudentia: Jurnal Hukum Ekonomi, 3(2), 143–158.
  91. Stevani Juniarti, D., & Yunita, K. (2025). Deteksi Fraud Laporan Keuangan Bumn Pada Era Kedua Presiden Jokowi Dengan Komite Audit Sebagai Moderasi. Jurnal Ilmiah Manajemen Ekonomi Dan Akuntansi, 9(2), 2025.
  92. Tapanjeh, A. M. (2021). Corporate governance from the Islamic perspective: A comparative analysis with OECD principles. Critical Perspectives on Accounting, 20(5), 556–567.
  93. Tayan, B. (2019). The Wells Fargo Cross-Selling Scandal. Stanford Closer Look Series: Corporate Governance Research Initiative, 1–23.
  94. Taymiyyah, Ibn. (1982). Public Duties in Islam: The Institution of the Hisba (trans. Muhtar Holland). Leicester: The Islamic Foundation.
  95. Tinker, A. M. (1980). Towards a political economy of accounting: An empirical illustration of the Cambridge controversies. Accounting, Organizations and Society, 5(1), 147–160.
  96. Tinker, T. (2015). The poverty of positivism in accounting research. Accounting, Auditing & Accountability Journal, 28(6), 890–915.
  97. Triyuwono, I. (2011). Akuntansi Syari’ah: Menuju Puncak Kesadaran Ketuhanan Manunggaling Kawulo Gusti. Akuntansi Multiparadigma, 2(2).
  98. Triyuwono, I. (2015). Masyarakat Taqwa: Reposisi Akuntansi Syariah. Malang: Universitas Brawijaya Press.
  99. Ullah, S. (2020). Islamic finance in the UK: A critical analysis of the gap between ideal and practice. International Journal of Finance & Economics, 25(3).
  100. Vinnari, E., & Laine, M. (2017). The moral mechanism of counter accounts: The case of industrial animal production. Accounting, Organizations and Society, 57(C), 1–17
  101. Vitolla, F., Raimo, N., & Rubino, M. (2020). Board characteristics and integrated reporting quality: an agency theory perspective. Corporate Social Responsibility and Environmental Management, 27(2), 1152–1163. https://doi.org/10.1002/csr.1879
  102. Watts, R. L., & Zimmerman, J. L. (1986). Positive Accounting Theory. Englewood Cliffs, NJ: Prentice-Hall.
  103. Wolfe, D. T., & Hermanson, D. R. (2004). The Fraud Diamond: Considering the Four Elements of Fraud. The CPA Journal, 74(12), 38–42.
  104. Wang, M. (2020). Research on Financial Analysis of Luckin Coffee.

Similar Articles

<< < 6 7 8 9 10 11 12 13 14 15 > >> 

You may also start an advanced similarity search for this article.