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Acc 545 Week 1 - Manager Memo

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Memo To: Manager From: CC: Date: Re: Professional Responsibilities of a Certified Public Accountant (CPA), and the differences between an audit and a review “Accountants, as professionals, are expected to maintain a level of ethical conduct that goes beyond society’s laws” (Schroeder, Clark & Cathey, 2005, p. 563). Therefore, the American Institute of CPAs (AICPA) established a Code of Professional Conduct to ensure public confidence in the quality of services provided by CPAs (Schroeder, et al., 2005). The June 12, 2012 Code of Professional Conduct list the Principles as; Responsibilities, Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services (AICPA, 2013). The principle of responsibilities requires the CPA to perform their responsibilities as professionals, by exercising sensitive professional and moral judgments on activities (AICPA, 2013). The principle of public interest requires the CPA to approach duties in a way that serves the public interest, honors the public trust and demonstrates commitment to professionalism (AICPA, 2013). The principle of integrity requires the CPA to maintain and expand public confidence, and execute professional duties with the highest level of integrity (AICPA, 2013). The principle of objectivity and independence requires the CPA to be free of conflicts of interest and independent in fact and appearance when performing audit and attestation services (AICPA, 2013). The principle of due care requires the CPA to perform professional responsibilities to the best of their ability, adhere to technical and ethical standards, and constantly improve competence and service quality (AICPA, 2013). The principle of scope and nature of

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