Earning Management in Islamic Ethical Perspective to Profit Quality Maslahah Improvement

The accounting scandal has proven that falsifying financial statements and managing income dishonestly has become rampant and has become part of the culture of many companies in the world. However, in meeting stakeholders' expectations, managers sometimes face a dilemma, displaying the financial statements as they are or taking actions in the financial statements to keep them fit and profitable. This dilemmatic position certainly has two contradictory sides that can lead managers who have fraud in accounting practices by holding FGDs with qualified informants at Kalla Group, Indonesia. This study aims to analyze the process and procedure of earning management carried out by the company. It also examines practice suitability, describes the application of efficient earnings, and formulates efficient EM forms with muamalah practices based on Islamic ethical values. The results of this study state that EM with Islamic ethical treatment is evidenced by several owners/principal statuses also acting as agents, meaning that it can minimize asymmetric information. Both parties between the agent and the principal, agree to run an efficient contract form to maximize utility and company goals. Efficient EM ensures that the financial reporting process maintains the applicable principles and rules. The practice of Efficient EM in the perspective of Islamic ethics in the Kalla Group Company can be described by the strength of the Kalla Group's corporate values. Values such as work of worship, customer appreciation, faster the better, active together, align with Islamic values or ethics and professional ethics