...AICPA Code of Professional Conduct ETH/376 In order to understand the AICPA Code of Conduct you must understand the AICPA itself. The AICPA is a group of CPAs all around the world that volunteers to keep up the ethical obligations of CPAs. The AICPA Code of Conduct is known as the the foundation of ethical reasoning in accounting because it lays out the “law” accountants should follow in order to keep a good moral and ethics in the accounting profession. There are many purposes for the AICPA Code of Conduct but I feel that there are three that are more important than others. One purpose that I feel to be important is to keep the integrity of the accounting profession. As accountant clients hold us to very high standards. We are suppose to be honest, loyal and trust worthy. I feel that without the AICPA Code of Conduct laying out any type of foundation of integrity then CPAs would be viewed in so many negative ways. I don’t think I can stress enough how much ethics play into many professions not just accounting and how important that the AICPA Code of Conduct is based on ethical reasoning. Another purpose that I feel to be important is to look out for the client’s best interest. By looking out for what is best for the clients then as accountants it keeps jobs open and growing because no matter what kind of business you are you need someone to do accounting but if you don’t have a company of accountants or a personal accountant looking for your best interest as an owner than...
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...AICPA Code of Professional Conduct Teresa K. Grimm 376 September 2, 2013 Sylvia Baughey AICPA Code of Professional Conduct I will be describing what the main reason of having the AICPA Code of Professional Conduct and why it’s the foundation of the ethical reason in the accounting world. I will also try to explain what I believe to be the most three important principles and why they are the most important. The main reason behind the AICPA Code of Professional Conduct is to uphold the standards and values of behavior in the community for all involved in the accounting profession. All of the principles of the AICPA Code are aspirational statements that form the main foundation for the Code’s enforceable rules. (Mintz & Morris, 2011) There are six principles to the code of professional conduct and they are, the public interest, objectivity and independence, due care, integrity, responsibility and scope and nature of services. (AICPA, 2013) When a member is using the Principles it will help guide him or her in a performance of his or her professional responsibilities and the call for an unyielding commitment to honor the public trust, even if it is at a sacrifice of personal benefits. (Mintz & Morris, 2011) I think the most three important principles of the Code would be integrity, the public interest and due care. Integrity is so important when a CPA is working with the public, because the CPA needs to gain the trust and confidentiality of his or her...
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...AICPA Code of Professional Conduct The AICPA is an organization that the majority of CPAs voluntarily join. Many in the business world are aware of the AICPA Code of Professional Conduct. This code of conduct focuses primarily on the ethical and professional obligations of CPAs. Members commit to abiding by the principles of the organization which holds them accountable to stringent principles and rules which go above and beyond ordinary laws and regulations. Members are expected to be self-disciplined and conduct themselves ethically and morally at all times. The three most important purposes of the AICPA Code of Professional Conduct are to guide their members in carrying out their responsibilities, to protect the public interest, and to enforce integrity. The AICPA Code of Professional Conduct reminds members that they should always exercise sound moral judgments and to remember they have a responsibility to their clients and the public to make professional decisions that are both ethical and moral. If CPAs were not responsible, society would lose all respect for the profession. There would not be a safe and fair way to judge the financial stability of companies or markets. When CPAs take responsibility and act professionally, ethically, and morally, their clients and the general public can feel confident they are reviewing accurate and credible financial statements of companies or organizations. It is crucial for CPAs to protect the public interest. The public interest...
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...“AICPA Code of Professional Conduct” ETH/376 The American Institute of Certified Public Accounts (AICPA) Code of Professional Conduct is a body of principals that has a goal to guide Certified Public Accountants (CPA’s) in the “performance of it professional responsibilities” (Mintz, 2011). The AICPA Code of Professional Conduct has six essential principles and they are: Responsibilities, the Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. Each of these principles is meant to be followed by the members of the AICPA. These articles are used to explain the responsibilities that CPA’s have to clients, colleagues and to the public. The first principle, Responsibilities, protects the public of irresponsible and immoral behavior. The Public Interest makes sure the public’s best interest is protected. The third and fourth principles guarantee that the trust of the public is greatest served; integrity, honesty and confidentiality are of highest importance, as well as objectivity and impartiality. The fifth principle deals with the level of quality service and competence that the public receives and deserves. The sixth principle ensures that CPA’s have good internal controls put into place, and makes sure that CPA’s are unbiased and free of conflict when performing an audit for a client. These principles are put into place to protect the public and also to protect CPA’s, because as they follow them they will ensure that...
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...AICPA Code of Professional Conduct Rebecca Moore ETH/376 August 18, 2014 Shanaika Muldrow The AICPA is a community of accounting professionals numbering at more than 350,000 from all over the world. The AICPA is a code of conduct that is formed on the bases of six principles. These principles are “responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature services” (Mintz & Morris, 2011). Each of these principles are used as a guide for the accountants performance of professional responsibilities and the commitment to uphold the publics trust even at the expense of personal benefits. This code of conduct is considered to be the foundation of ethical reasoning in the accounting field because it touches on all aspects of the accounting profession. It also protects all the parties that are involved, the accountant, investors, the public, and creditors. I believe that the three most important purposes of the AICPA is to protect the client, the public, and the accountant. I would say that the most important purposes of the AICPA because the client, the public, and the accountant are the individual parties that make a company succeed or fail. Protecting these individuals is accomplished by following the AICPA principles in all situations. The three main principles that do this are responsibilities, the public interest, and integrity. Accountants have responsibilities to anyone who employs their accounting services. They...
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...AICPA Code of Professional Conduct Lucinda M. Joslin ETH/376 27 April 2015 Susan Paris AICPA Code of Professional Conduct Just as a doctor is expected to act within certain ethical standards when entrusted with a person’s life, so is a CPA expected to be ethical when handling someone else’s money. With several hundred thousand CPA’s as members, the American Institute of Certified Public Accountants’ (AICPA) code of professional conduct principles are viewed as the ethical guidelines for CPA’s. Of the AICPA’s principles, the three that I feel are the most important are integrity, objectivity and independence, and due care. Body The first principle that I feel is most important is integrity. For me integrity is a character trait. I view a person to have integrity if they are someone who will do what is right no matter who is watching, or what the situation is. Since a CPA has to be viewed an honest and there to serve the public trust, they must have integrity. The next principle that I feel is important is for a CPA to have objectivity and independence. A CPA must not have any conflicts of interest and be unbiased to be able to meet their professional responsibilities in an objective manner. The independence of a CPA is something that they must strive to maintain. Since perception is often reality for people, a CPA needs to avoid situation that can be perceived as having a relationship with a client that could cause the CPA’s independence to...
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...AICPA Code of Professional Conduct Katie Bradbury University of Phoenix ETH/376 The AICPA is the world’s largest association to signify accountants. Founded in 1887 the AICPA is formed out of 350,000 members in 128 different countries. Upon the establishment of the ACIPA, its creation of accountancy as a profession well-known for educational requirements, high professional standers and a strict code of professional ethics. The AICPA is considered to be the foundation of ethical reasoning in accounting because it covers everything from independence to due diligence. The Code of Conduct is basically, a guideline for every CPA and accountant to follow in there career. There are several purposes to the Code of Professional Conduct but three purposes I feel are the most important. I believe after reading the AICPA Code of Professional Conduct the three most important purposes are to protect the investor, to protect the creditor and to protect the employee. The AICPA’s mission is to provide members with the resources, information, and leadership that will enable them to provide valuable services in the highest standards to benefit the public, employers and clients. I feel protecting the investor, protecting the creditor, and protecting the employee are the most important because these are key people that make the company what it is. I feel this is done by responsibilities, the public interest and integrity. Professional CPA’s have responsibilities to protect all those who...
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...AICPA Code of Professional Conduct The AICPA is the American Institute of Certified Public Accountants, which consists of more than 350,000 people in the accounting profession. They developed the AICPA Code of Professional Conduct as a standard for ethical decision-making in the Accounting profession. It is considered the foundation for moral reasoning, outlining the obligations of accountants to their companies and their clients. Since the panel consists of those within the profession, they are able to identify the appropriate conduct that should take place in situations of temptation for personal benefits. The code requires that all those who are committed to their profession use moral judgment while performing their responsibilities. One of the most important purposes of the AICPA Code of Professional Conduct is to guide accounting professionals through a decision-making process when ethical dilemmas occur. There is a step by step process that can be followed to ensure that they arrive at the appropriate ethical and moral decision, when dealing with a difficult situation. If, for example, a member of a client organization asks that they make adjustments to financial statements to better the appearance of the company, the accountant has a process of how to handle the situation. Another important purpose of the code is to ensure that accountants uphold the integrity of their profession. They must provide their service with character traits of honesty, reliability...
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...AICPA Code of Professional Conduct Summer Merriweather ETH 376 02/04/2013 Marvin Huntsman AICPA Code of Professional Conduct The AICPA Code of Professional Conduct is a body of principal that as a goal to guide CPA’s in the “performance of it professional responsibilities” (Mintz, 2011). The AICPA Code of Professional Conduct has six important principles and they are: Responsibilities; the Public Interest; Integrity; Objectivity and Independence; Due Care; and Scope and Nature of Services. Each of the principles is meant to be follow by the members of the AICPA. These articles are used to explain the responsibilities that CPA’s have to clients, colleagues and the public. AICPA Code of Professional Conduct Principles The first principle’s responsibilities are to protect the public of irresponsible and immoral behavior. The second interest makes sure the public’s best interest is protected. The third and fourth principle ensures that the trust of the public is best served; integrity, honesty and confidentiality are of outmost importance, as well as objectivity and impartiality. The fifth principle deals with the level of quality service and competence that the public receives and deserves. The sixth principles ensures that CPA’s have good internal control put into place, and to make sure that CPA’s are unbiased and free of conflict when performing an audit for a client. These principles are put into place to protect the public and I would say also to protect...
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...Institute of CPA’s The American Institute of CPA’s (AICPA) provides a Code of Professional Conduct to its members. The purposes of the Code are to protect the public and raise public confidence in the profession, to provide guidance in respecting the confidentiality of clients and employer’s, and to maintain these high standards through the sharing of information with members. Protect the Public The first purpose, protection of the public and to raise public confidence in the accounting profession, is explained in the first section by asking members to behave honorably, even if it means the loss of any personal advantage (AICPA, 2013). The Articles and Rules describe the need for CPA’s to keep foremost in their thoughts that actions should always serve the public interest and raise the level of the public’s trust towards the profession. There is a clearly defined framework that outlines how to maintain integrity, objectivity, independence, and due care. Additionally, there is a section on the general standards and compliance with accounting principles. Protect the Client The second purpose is to provide the accounting profession guidance on how to balance the protection of the public with the rules of confidentiality of their clients and employer’s. This is accomplished by the inclusion of a section devoted to the responsibilities of CPA’s to their clients. This section provides numerous rules on how CPA’s should conduct themselves in regards to confidential information,...
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...The American Institute of Certified Public Accountants (AICPA) was originally founded in 1887. The AICPA founded accounting as profession, which is distinguished by high professional standards, strict educational requirements, a detailed code of professional standards, and a commitment to serving the public interest. In the early years of the organization rules and regulations were drafted. During the 1970s the responsibility of setting generally accepted accounting principles (GAAP) was transferred to the Financial Accounting Standards Board (FASB). The AICPA provides training, professional skills, programs, services, and publications to its 394,000 members. The AICPA Code of Professional Conduct consists of rules and principles. The principles provide the framework for the rules and rely on the professional conduct and knowledge of its members. The code is considered the foundation of ethical reasoning in accounting because it addresses all aspects of the accounting process in detail. The code of professional conduct expresses the profession’s responsibility to the public, colleagues, and clients. The code defines the expectations of individuals as a voluntary act within guidance of the principles. I believe the three most important purposes of the AICPA Code of Professional Conduct to be in Section 53 – Article II – The Public Interest, Section 55 – Article IV – Objectivity and Independence, and Section 54 – Article III – Integrity. Article II, The Public Interest, states...
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...This work of ENG 121 Week 5 Quiz consists of the next questions ans answers for them: 1. February is my least favorite Month. 2. Many students mistakenly believe that anything that appears in print must be a fact. Especially in textbooks. 3. Lucia works for a lawyer who depends on her for everything. Answering phones, planning business trips, proofreading documents, and scheduling appointments. 4. Helen has now begun to recognize that she has not spent enough time with her closest friends over the past few months and has swore to herself that she will not let this happen again. 5. It is too soon to tell what affect the new principal is going to have on our school. 6. Neither Lisa nor her sister have made a decision yet. 7. Vince didn't get to sleep that night until well after 2 a.m. that's why he was so exhausted the next day. 8. You need to remember to take two things with you to the concert tonight, a flashlight and a raincoat. 9. The package, along with all of its contents, were found last night. 10. The main character in John Updike's latest book that was published this past summer is a teenager who lives in New Jersey. 11. Because it rained all morning our soccer game has been postponed. 12. Michael is knowledgeable about the changeable nature of the universe. 13. If I had known you were coming, I would of baked a cake. 14. Two many cooks spoil the broth. 15. Our professor suggests, that we bring the following...
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...TSBPA Code of Professional Code Question 1 | | 10 / 10 points | Texas State Board of Public Accountancy regulates the practice of public accountancy in Texas. | | True | | | False | Question 2 | | 10 / 10 points | Membership in the AICPA is voluntary, but by accepting membership, a CPA assumes an obligation of self-discipline and agrees to adhere to the Code. | | True | | | False | Question 3 | | 10 / 10 points | The AICPA Rules of Conduct apply to all professional services performed. | | True | | | False | View Feedback | Question 4 | | 10 / 10 points | The AICPA Code of Professional Conduct provides practical guidance to only members in public practice. | | True | | | False | View Feedback | Question 5 | | 10 / 10 points | The AICPA Code of Professional Conduct defines the term member as members in business, members in public practice and members in government. | | True | | | False | View Feedback | Question 6 | | 10 / 10 points | In considering general ethics, the primary goal is to arrive at a set of acceptable methods for making ethical decisions. | | True | | | False | Question 7 | | 0 / 10 points | The AICPA Code of Professional Conduct is a collection of codified statements issued by the American Institute of Certified Public Accountants that outline the maximum ethical standards that must be followed by CPAs. | | True | | | False | Hide Feedback | | | The AICPA Code of Profession Conduct outlines...
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...Certified Public Accountants’ Responsibility to Clients and the Profession Abstract The professional responsibilities of a Certified Public Accountant (CPA) to their clients were investigated. The responsibilities were determined by the American Institute of Certified Public Accountants Code of Professional Conduct. Specifically, Rule 102 regarding integrity and objectivity was used to determine what constituted as integrity and objectivity in the practice of a CPA acting as the moral conscience of their client. Rule 301 was used to determine whether information should be disclosed in the instance of fraud. Based on the information in the code of professional conduct, it was determined that CPAs have a responsibility for the greater public interest in determining the appropriate actions to be taken regarding potential fraud. Certified Public Accountants (CPAs) providing services such as accounting, taxation, audit, attestation, and other related services have a responsibility to serve small businesses as a moral conscience. Small businesses are focused on growing their business. As a result, the small business has big dreams. Many times the owners of small businesses are good at doing the service they perform; however, they often prefer that licensed professionals oversee the accounting function. Although CPAs have a responsibility to their clients they are not to act as the moral conscience, rather, they should act as a moral conscience, CPAs should turn in...
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...Chapter 03 Professional Ethics True / False Questions 1. The Rules portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice. True False 2. The AICPA Code of Professional Conduct derives its authority from the Bylaws of the AICPA. True False 3. An immaterial loan from the CPA to an officer of a client impairs the independence of the CPA. True False 4. Financial interests of a CPA's nondependent children are attributed directly to the CPA. True False 5. Statements on Accounting and Review Services are enforceable under the AICPA Code of Professional Conduct. True False 6. CPAs may not advertise as to any special expertise other than in accounting, auditing, and tax. True False 7. A CPA may receive a commission for recommending a particular computer system to an audit client. True False 8. The communications between CPAs and their clients are privileged under federal law. True False 9. CPAs can advertise the fees only for their nonattest services. True False 10. The American Institute of Certified Public Accountants has been the primary source for ethical rules for internal auditors. True False Multiple Choice Questions 11. ABC Company is audited by the Phoenix office of Willingham CPAs. Which of the following individuals would be least likely to be considered a "covered member"...
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