13. The AICPA’s Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted…
When auditing a publicly held company, auditors need to observe principles. The ethical principles of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct are independence, responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of services. More specifically, audit team members are required to be objective and independent with regard to the audit by maintaining objectivity and being free of conflicts of interest in discharging professional responsibilities and by being independent in fact and appearance when providing auditing and other attestation services. Through this one can see how influential the SEC is. Under the Sarbanes-Oxley Act of 2002, auditors have to be objective and independent otherwise legal sanctions can be incurred.…
In dealing with the ethical issue, a professional member should handle it with integrity and objectivity as any CPA is required to do under the Rule 102 of AICPA Code of Professional Conduct. Leaving all conflicts of interest aside when dealing with the preparation of financial statements will help you avoid misrepresentation of any entries that might lead to future legal problems.…
Integrity and objectivity is a rule that pertains to both practicing and non-practicing CPAs. Becoming a CPA comes with many responsibilities and expectations. CPAs should never conduct misleading statements rather they are the CFO or auditor.…
The AICPA is a voluntary association of CPA’s. There are several hundred thousands of CPA’s around the world. This association is used to discuss the ethical obligations of all CPA’s. These principles that the association has and will establish are in place to make sure that the public’s trust is honored regardless of the effect it will have on the CPA’s personal benefits. These principles are based on the values and the virtue of the CPA’s themselves. I believe that the three most important purposes of the AICPA code of professional conduct are integrity, objectivity, and due care.…
All AICPA members in public practice are required to follow the ethical and professional standards outlined by AICPA Code of Professional Conducts, when conducting their business. The AICPA code of professional conduct not only outlines the responsibilities and obligations of its members for acts that could be disreputable to their profession but also ensures that the members observe objectivity and integrity. AICPA also revise and reissue the Code of Professional conduct annually in the face of changing professional environment.…
The American Institute of Certified Public Accountants (AICPA) was founded in 1887, the AICPA represents the AICPA represents all Certified Public Accounts (CPA) nationally regarding rules and regulations and also serves as advocate to public interest groups and other professional organizations. The AICPA develops standards regulations, educates its members on various directions, monitors and enforces compliance and ethical standards.…
The three most important purposes of the AICPA code of professional conduct are public interest, integrity, and due care. Public interest is the most difficult to uphold many times because it could mean sacrificing ones job, or future promotions within the company. However, without the public interest at heart, too many CPA’s would be doing unethical work only to get ahead in the company, or make more money for the company or themselves.…
To a large extent, the accounting profession is self-regulated through various professional associations rather than being regulated by the government. The AICPA, the IMA, and the IIA have internal means to enforce the codes of ethics. Furthermore, the professional organizations for CPAs in each state, known as state societies of CPAs, have mechanisms for enforcing their codes of ethics, which are usually very similar to the AICPA Code. Violations of ethical standards can lead to a person's being publicly expelled from the professional organization. Because of the extreme importance of a professional accountant's reputation, expulsion is a strong disciplinary measure. However, ethical violations can lead to even more adverse consequences for CPAs because of state and federal laws.…
The Principles of the AICPA Code are aspirational statements that form the foundation for the Code’s enforceable rules. The Principles guide members in the performance of their professional responsibilities and call for an unyielding commitment to honor the public trust, even at the sacrifice of personal benefits. While CPAs cannot be legally held to the Principles, they do represent the expectations for CPAs on the part of the public in the performance of professional services. In this regard, the Principles are based on values of the profession and traits of character (virtues) that enable CPAs to meet their obligations to the public. The Principles include (1) Responsibilities; (2) The Public Interest; (3) Integrity; (4) Objectivity and Independence; (5) Due Care; and (6) Scope and Nature of Services.…
Under the ABA Model Rules of Professional Conduct Rule 1.6, I can reveal anything discussed with client that is under confidentiality if I am confident I will be preventing my client from harming others or themselves by speaking to appropriate officials. Under this rule, I feel it is appropriate as it stands because if the client is to know I can report anything, even under confidentiality, there would be no trust and the client would then not want to disclose anything essential to their attorney. What’s most important is keeping the lines of communication open between clients and attorneys, however if a client is to threaten an action of bodily harm, or have criminal intent then attorney-client privilege should be null and void. However, this…
AICPA.org (2014) states, “The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the profession’s technical and ethical standards.” (¶ 1) By taking on these responsibilities, the AIPCA can ensure the public is protected and the CPAs are following the set…
The last three sections of the AICPA code deal with the accountants responsibilities to the people who they serve. Accountants have duties to their clients, their colleagues, and to themselves. These duties include professionalism, confidentiality, and credibility. Members of the AICPA must behave in a business-like manner. An accountant should never disclose confidential information. Accountants must instill confidence and belief from those they work for and with.…
The AICPA Code of Professional Conduct says that certified public accountants have responsibilities to everyone who use their professional services. Unless you are an accounting professional, it is highly unlikely that you know all of the rules and regulations that must be abided by when it comes to bookkeeping, taxation and financial reporting. That’s what keeps the accounting profession running; they are the experts that the rest of the world turns to for accounting services. CPA’s must maintain a level of responsibility and follow ethical standards when performing these standards. It is the accounting professional’s responsibility to do what it right, even when it’s not the popular vote to protect themselves and their client.…
The American Institute of Certified Public Accountants (AICPA) is a group of CPAs that span across the globe. Its members are all volunteers and consist of over 350,000 people. Most of their debates and discussions are how accountants should handle certain professional issues. There are six principles within the AICPA code of professional conduct; responsibilities; public interest; integrity; objectivity and independence; due care; and scope and nature of services. Although all six principles are extremely important for an accountant to uphold one of the most important principles is responsibility. The organization believes that the CPAs have a responsibility to uphold morals and values when dealing with the public professionally. Accountants are often dealing with sensitive information, it is very important that they keep these documents and information secure for their clients. Leaking out personal bank accounts, social security information, or passwords can cripple a customer and organization. Word of mouth spreads rapidly if a client or organization finds out that their accountant is unethical; the last thing an accountant wants is to have a tainted reputation. Public interest is another valuable principle for an accountant to possess. “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.” (2013, aicpa.org) The AICPA feels that it is the accountants’ obligation to solve the problems of their clients and serve their best interests; keeping in mind the laws at which they must abide. According to dictionary.com integrity is the “adherence to moral and ethical principles” which is another significant belief in the American Institute of Certified Public Accountants code of professional conduct. Integrity is important in accounting in that it requires them to be honest and direct with information. Certified Public…