Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.5, No.7, 2014 187 The Effect Of Emotional Spiritual Quotient (ESQ) To Ethical Behavior In Accounting Profession With Tri Hita Karana Culture’s As A Moderating Variable Anantawikrama Tungga Atmadja and Komang Adi Kurniawan Saputra Universitas Pendidikan Ganesha Correspondence author: anantawikrama_t_atmadja@yahoo.com Abstract This study examined the effect of Emotional Spiritual Quotient (ESQ) to ethical behavior in the accounting profession culture of Tri Hita Karana (THK) as a moderating variable. Location of the study was conducted in Bali by selecting the accounting profession, both educators accountants, public accountants, as well as the public sector accountants as respondents. This research design using survey method with a questionnaire to 42 respondents. The data analysis that used was MRA (Moderated Regression Analysis). Results of this study declare that variable Emotional Spiritual Quotient (ESQ) significantly influence the ethical behavior of the accounting profession. As well as cultural variables Tri Hita Karana (THK) ESQ moderating influence on the ethical behavior of the accounting profession. Keywords: Emotional Spiritual Quotient, Tri Hita Karana, the accounting profession, ethical behavior 1. Introduction The monetary crisis that hit Indonesia have a great impact on the business world, many company that insolvent, banks was liquidated, and the real sector been stalled, including government institutions. The system creation and procedure in Good Corporate Governance (GCG) practices in this case still leaves many slit for the deviant behavior to commit a fraud. The proof is a lot of public companies neither in the world nor in Indonesia has collapsed due to mistakes in practice of management system which of course there involved directly or indirectly accounting profession as part of the management who do not run their ethics code. The occurrence of this problem remains that many profession are risk be borne by accountant and declining accountants defense under pressures that made by the shareholders and interested parties, it is caused by the neglect of professional ethics in accounting profession (Fitriaman, 2006). The case in Indonesia submitted by Baidae (2000) in Fitriaman (2006) which states that the results of the BPKP evaluation on 91 KAP/KJA in Indonesia for 4 (four) years KAP audit events from the year 1994 to 1997 there were 97.55% which do not comply with the Public Accountants Professional Standards (Standar Profesional Akuntan Publik hereinafter called by SPAP). That's why the accounting profession are required to have a high sense of responsibility, especially their social responsibility to the community. In this reform era, which is any form of accountability demanded transparency, where people have very highlighting the accounting profession that has an important role. So the accounting profession in the eyes of people who now have a high level of knowledge as well as the publication of the media that caused public awareness of the existence of frequent protests accounting profession. Accounting profession ethics violations, added with the unfolding cases cost the state, the public began to doubt accounting profession commitment. Accounting is a profession that lives in a business environment, where the existence from time to time are increasingly required by the business community (Fitriaman, 2006). That is why the accountants should really be run in a professional manner according to professional standards and ethics code. The violations Accountant / auditor reflected when auditors have failed to observe the requirements of the standard by meticulous professionalism, skill or competence, disobedience against professional ethics, as well as dishonorable action. Fraud and breach of professional ethics code in the accountant / auditor occurs due to a lack of awareness, within the accountant to take responsibility for their work. So that the accountant is expected to have a conventional intelligence, spiritual intelligence and emotional intelligence as delimiter the desire to do fraud or breach of ethics code. The research that conducted by (Hidayat, 2012) states that conventional intelligence (IQ), emotional intelligence (EQ) and spiritual intelligence (SQ) is often called ESQ (Emotional Spiritual Quotient) positive influence on the acceptance of dysfunctional audit behavior, that means the higher ESQ, the more acceptance of dysfunctional audit behavior. This suggests that accounting profession in their profession professionally can not