The Effect of Ethics Course on the Islamic Ethical Behavior of Accounting Students: A Preliminary Study in Islamic-Based Universities in Malaysia

Despite efforts to curb accounting scandals through ethics courses in university programs, unethical behaviour in business and finance remains a concern. This study examines the impact of the Business Ethics and Corporate Governance (BE & CG) course, a core component of undergraduate accounting programs in Malaysia, on the Islamic Ethical Behaviour (IEB) of accounting students. The research was conducted at three Islamic-based universities in Malaysia: Universiti Sultan Zainal Abidin (UniSZA), Universiti Sains Islam Malaysia (USIM), and International Islamic University Malaysia (IIUM). The study utilised a pre- and post-test survey questionnaire to evaluate IEB using the IEB index, which is grounded in the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) Code of Ethics for Accountants and Auditors of Islamic Financial Institutions and Shari’ah principles. This index measures six essential ethical principles: trustworthiness, legitimacy, objectivity, professional competence and diligence, faith-driven conduct, and adherence to professional conduct and technical standards. Some items were adapted to include elements of academic dishonesty to contextualise the study within an educational context. Overall, data analysis using Partial Least Squares (SmartPLS 4.0) revealed that while students initially exhibited strong IEB, their ethics improved significantly after completing the course. This indicates a positive relationship between the ethics course and enhanced IEB in accounting students.