AICPA Code of Professional Conduct Composition, Applicability and Compliance The Code of Professional Conduct of the American Institute of Certified Public Accountants consists of two sections—(1) the Principles and (2) the Rules. The Principles provide the framework for the Rules, which govern the performance of professional services by members. The Council of the American Institute of CPAs is authorized to designate bodies to promulgate technical standards under the Rules, and the Bylaws require adherence to those Rules and standards. The Code of Professional Conduct was adopted by the membership to provide guidance and rules to all members—those in public practice, industry, government and education—in the performance of their …show more content…
They guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The Principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage. ET Section 52 - Article I - Responsibilities In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities. .01 As professionals, certified public accountants perform an essential role in society. Consistent with that role, members of the American Institute of Certified Public Accountants have responsibilities to all those who use their professional services. Members also have a continuing responsibility to cooperate with each other to improve the art of accounting, maintain the public 's confidence, and carry out the profession 's special responsibilities for self-governance. The collective efforts of all members are required to maintain and enhance the traditions of the profession. ET Section 53 - Article II The Public Interest 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. .01 A distinguishing mark of a profession is acceptance of its responsibility to the public. The accounting profession 's public consists of clients, credit grantors, governments, employers, investors, the business
You then go onto the online version of the AICPA Code of Professional Conduct and search to find
The profession of accounting is a one that is highly regulated, due to the knowledge and power each accountant possesses. Although an accountants duties differ from one position to the next, the main sectors that accountants pursue are auditing or taxation. Auditing is ensuring the public that the information listed on the financial statements of public companies is free of material misstatements. While taxation is helping people or companies file their tax returns to the federal government or offering tax advice. In the world of auditing, you either follow the Public Company Accounting Oversight Board (PCAOB), for public company audits, or the American Institute of Certified Public Accountants (AICPA), for other entities
Accountants play an important role in the world of business. The article, “The Future of the Accounting Profession and the Value of the CPA.”, illustrates the importance of the accounting profession and the challenges that accountants face. With over ten years of experience working in the areas of finance and office management, I have personal experience with various influences in the accounting world that were discussed in the article. This includes topics such as technological advancements, the merits of networking & mentorship, the value of obtaining a CPA designation, accountancy education, and work-life balance (WLB). The accounting profession continues to evolve alongside social trends and corporate developments, such as corporate social responsibility (CSR) and crowdfunding.
5. Exhibit professional values and behaviors as outlined by a professional code of ethics, professional standards, and legal statutes.
The organization sets U.S. auditing and ethical standards for privately held companies, not-for profit organizations, federal, state, and local governments. It represents the CPA profession by serving ? as an advocate before legislative bodies, public interest groups and other professional organizations? (aicpa.org). Its creation established accountancy as a profession and distinguishes itself by demanding scholastic requirements, high professional accountancy principles, a stringent code of professional ethics and an obligation to serving the public
Accountants should always carry out the public responsibility, meaning they have a responsibility to ensure that the accounting functions are performed to the highest possible standards and the information which an organisation provides for its stakeholders is true and accurate. To reach the goal of improving the performance of accountants, there might be several steps to undertake. There should be on-going education to keep abreast with the existing and emerging
Three characteristics comprise the Model of Trust Enhancement – ability, benevolence and integrity. According to the textbook, the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct consists of the principles and rules established by the profession to aid as guidance in the
Chartered accountants are therefore expected to display professionalism in their work so that they are able to maintain public confidence in the companies. This is a result of the accountants reporting the true performance of the companies they represent (Radebaugh & et al, 2012).
For instance, both lawyers and accountants have agreed on profession-specific codes of professional conduct, and physicians still frequently take the Hippocratic oath. Regarding management consultants the professional associations have formulated different sets of ethical rules. The contents of the individual codes either specify what professional conduct is or they indicate what cannot be considered as professional conduct. However, it is also obvious that professional rules only serve as overall ethical guidelines. The consequence of this is that the professional when practising is exposed to several more specific ethical issues for which there is no explicit or written solution.
CPAs perform an essential role in society, and they are responsible to all those who use their professional services. CPAs have a continuing responsibility to improve the art of accounting, maintain the public’s confidence, and carry out the profession’s special responsibilities for self-governance (The CPA Journal, 2004).
With professions having this tremendous knowledge regarding a company’s financial standing and not being able to disclose the information to the public it can create major investment errors. With these restrictions in place by the AICPA the accountants and auditors “… in a position of having to choose between earning a livelihood or making a proper ethical choice” (Synder, 2011).
The general conducts are, first, integrity; members should straightforward and honest in all professional and business relationships; objectivity means do not allow bias, conflict of interest or undue influence of others to override professional or business judgments; professional competence and due care it requires member maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent Professional Services based on current developments in practice, legislation and techniques and act diligently and in accordance with applicable technical and professional standards; confidentiality is to respect the confidentiality of
What it means to be a professional and how this links to the PTPT code of conduct and the importance of professionalism.
Research your state 's professional code of conduct for the definition and expectations of your selected character trait.
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