Accounting professionals are obliged to comply with certain standards in an effort to protect shareholders and the general public. When one joins any of the accounting professional organizations, such as the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA) or the Institute of Management Accountants (IMA), one is agreeing to adopt the ethical code. This professional code is a positive set of statements and guidelines for CPAs with explicit rules as to what accountants should or shouldn’t do. It applies to all members, whether it is public practice, industry, government or education. There are many reasons why one would want the accountant representing them to adhere to a specific rules and regulations. From an investor’s point of view, one would want an accountant that is going to have their best interests in mind, but to also be morally and ethically bound to perform within legal confines. Sometimes actions may be considered within acceptable limits of the law, but not ethically suitable; in such instances, the code of ethical conduct is even more important. Investors want insurance that the corporation with which they are financially backing is transparent. Transparency, which from an accounting/corporate standpoint, is the free flow of information within an organization and between the organization and its many stakeholders. This transparency and accountability improves the credibility and the relationship between the corporations and the stakeholders. Accountants and those in the accounting profession have many laws and regulations by which they must abide in handling others’ financial interests. The accountant’s code of ethics not only instills trust, but also establishes credibility that the accountants will act in a manner that represents integrity and transparency. After the numerous scandals over the past decade, the general public lost faith in the accounting profession. The unethical behaviors of such firms as Arthur Andersen and questionable actions of several other big four firms damaged accounting reputations and credibility internationally. The Public Company Accounting Oversight Board (PCAOB) was created in direct response to these scandals to oversee the actions of auditors. The PCAOB is responsible for investigating and providing the disciplines against those who violate the code of conduct. It has also issued standards and related regulations which are regularly reviewed and updated based on the ethics standards described in the AICPA’s Code of Professional Conduct (PCAOB, 2010). According to the AICPA, the Code of Professional Conduct recognizes the profession’s responsibilities to the public, to clients and to colleagues and sets forth basic guidelines for the profession. The Code of Professional Conduct of the American Institute of Certified Public Accountants is comprised of two sections – the Principles and the Rules. The principles set the foundation of the rules which govern the professional services. Accounting professionals have a responsibility to all who use their professional services while continuing to improve the art of accounting. It is necessary for members to cooperate so that their collective efforts maintain public confidence and cultivate the self-governance traditions of the profession. Accounting standards and regulations are ever-changing, it is imperative that, as professionals, the members not only follow the code of conduct but add quality and share value-learned from their experiences. As is expected from the accounting profession and should always be, one must have the public’s best interest in mind while preserving ethical behavior. The code of conduct states, “Members should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism” (AICPA, 2010). If one adheres to this statement, one will yield reliance, objectivity and integrity in the services one provides. Ethical behavior is a prominent factor in decision-making, one must consider a multitude of possible ramifications the decision may cause and act in the way most ethically and beneficial to all. This often presents conflict as the client’s demands may not always serve the best interest of the public, but in fulfilling one’s responsibility to this code, the best interest for all shall hopefully be achieved. Integrity is integral to the accounting profession, it defines ones character and is the benchmark from which one should base one’s decision-making. If one cannot rely on the integrity of the professional services of their accountant, one cannot rely on the information that is provided by said services. In the absence of specific rules, standards or conflicting opinions, integrity is a way of measuring what is right and just. It requires the accountant to act in a way that preserves independence, reflecting an unbiased and objective thinking, as well as due care. Objectivity and independence means that the accountant should not have conflicts of interest when performing services and professional responsibilities. Since accounting professionals frequently serve multiple interests in varying capacities, it is necessary that one remain objective in one’s assessments and independent in all circumstances. Due care is another principle that is required as a code of conduct. Due care is the level of judgment, activity or determination that a person would reasonably be expected to exercise in particular situations. Accounting professionals are required to act in form that the best judgment in their decision-making and professional activities consistently shines through. While due care requires that services be provided with competence and diligence, it is also necessary for the accounting professional to determine the scope and nature of the services to be provided. Too easily conflicts of interest may arise when multiple services are provided. For this reason one must assess their individual judgments and determine whether the scope and nature of other services provided to an audit client would affect the performance of the audit function for that client (AICPA, 2000). Although the Code sets forth basic guidelines, it has very specific rules that accounting professionals must follow. As previously mentioned, all members are required to adhere to the Rules of the Code of Professional Conduct and must justify any departures from these Rules.
Members who have authority over another in the practice of public accounting may be held responsible for that person’s acts as well. Whereas the Principles are ideal standards of ethical conduct, they are not enforceable, but the Rules of Conduct are minimum standards that are enforceable. Many state and federal courts have set forth that all practicing Certified Public Accountants follow the Code of Professional Conduct. One of the key rules in the AICPA’s Code of Professional Conduct requires members to be competent. This means that a member who agrees to engage in professional services is not only competent in the technical qualifications to perform the services, but has the knowledge and skills to complete the services in accordance with the profession’s standards. In most instances, accounting professionals may not disclose confidential client information without the client’s consent, some exceptions to this rule would be in response to ethics divisions, subpoena or obligations related to technical standards. The AICPA may take corrective action when one does not abide by the Rules of Conduct, further action may be taken by state Board of Accountancy dependent on the situation. Ethical conduct must be inherent behavior of an accounting professional, unswerving adherence towards accounting principles and the betterment of processes is necessary qualifications. Accounting professionals are held to higher standards and this is rightfully so, one must be trustworthy particularly with the information this profession accesses. As a professional in this industry, one has responsibilities to exercise conscientious professional and moral judgments. One should conduct oneself in a manner that reflects one’s strong ethical stance as well as competent technical qualifications. Accounting professionals have a responsibility to respect the trust the public instills upon the profession, in addition to serving the public’s interest. To follow the “golden rule – to treat another as one would want to be treated,” but in this respect to put oneself in the position of the client and perform responsibilities with highest integrity as one would want performed for oneself and to adhere to ethical and moral standards. An unbiased and objective mind that observes technical and ethical standards of the profession are all principles reflected in the AICPA’s Code of Professional Conduct. The principles are the framework of the rules – independence, integrity and objectivity, general standards and compliance to said standards are expectations that one can and should expect when working with the accounting profession. It takes a great deal of time to build a reputation, but an unethical action can destroy it in an instant. The twenty-sixth president of the United States, Theodore Roosevelt, said, "To educate a person in mind and not in morals is to educate a menace to society." A professional code of conduct aligned with strong core values can produce benefits for all.

References
American Institute of Certified Public Accountants (2010). Code of professional conduct. Retrieved from http://www.aicpa.org/RESEARCH/STANDARDS/CODEOFCONDUCT/Pages/default.aspx
Brooks, L.J., & Dunn, P. (2010). Business & professional ethics for directors, executives & accountants. 5th Edition. Mason, OH: South-Western, Cengage Learning.
Public Company Accounting Oversight Board (2010). Ethics and independence. Retrieved from http://pcaobus.org/Standards/EI/Pages/default.aspx