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 all those who accept membership are obligating themselves to act in a way that will serve the public interest, public trust, and demonstrate commitment to professionalism. Members are expected to provide quality services, enter fee arrangements, and offer a range of services. Article IV, Objectivity and Independence, defines objectivity as a distinguishing feature of the profession. The principles of objectivity impose the obligation to be impartial, intellectually honest, and free of conflicts and interest. Article III, Integrity, defines integrity as an element of character that is fundamental to professional recognition. Integrity is a quality that the public’s trust establishes.
I chose these three articles of the AICPA Code of Professional Conduct because these three articles outline a foundation for professional conduct. A member who places the public’s interest first, conducts themselves free of conflicts and personal interest, has integrity in the public’s eyes, and presents themselves as an ethical professional has the foundation as an ethical professional. A member who follows these three articles, outlined in the code, would also possess the morals and ethics that would ensure proper conduct in all areas of the profession.