Introduction AICPA Code of Professional Conduct is the code of conduct that required each member of the organization to follow rigorously and act with integrity, objectivity, due care, competence, fully disclose any conflicts of interest (and obtain client consent if a conflict exists), maintain client confidentiality, disclose to the client any commission or referral fees, and serve the public interest when providing financial services. Accountants are relied upon to be trustworthy and maintain high ethical standards. It is because of the nature of the profession that puts them in a position of trust with people who rely on their professional judgment and guidance in making decisions. These decisions are extremely important in accounting …show more content…
Section 50 - Principles of Professional Conduct
Section 50 of the AICPA code of Professional conduct membership for certified public accountant is voluntary. By being a member of this organization, members are obliged to have high ethical values and follow the rules and regulations. These laws are set to evaluate their performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. Accountants must be always professional always. There are many attributes that can describe being professional. Accountant must be trustworthy and this can go a very long way. The perception of the public is very important since accountant must be a truth teller and be a great communicator to give clear and non-confliction information to the clients, employers or the society.
Professional certified public accountants are held in high regards, and public perception is very important and they must go far and beyond what is expected of them nor what the rules says. In carrying out their responsibilities, they must performed their duties in compliance with standards or ethical values of honesty, integrity, objectivity, due care, confidentiality, which must be fully committed to. They must put clients or public interest first before their own.
Section 90 Rules - Applicability and Definitions
The bylaws of the American Institute of Certified Public Accountants require that members adhere to the rules of the
I agree with you in your position because I too believe the CPA does not have to advise Ahi on its plan to earn interest on their $100,000,000 tax liability to the IRS by mailing the check from the U.S. Virgin Islands to create a float. Article seven, scope and nature of services, of the AICPA Code of Professional Conduct sates that the CPA should observe the principles of the Code in determining the scope and nature of services provided (Colson, 2004). Ahi employee’s plan is not part of the CPA competencies in regards to taxation; the activity does not seem to be consistent with the CPA’s role. This plan should have probably been discussed within the finance or accounting department in Ahi Corporation.
Article 8 gives examples on using the AICPA Code of Professional Conduct. The article gives the example of you taking over the role of handling the independence and ethical matters involved with auditing for a retiring partner in your firm. You are quickly given the task of determining whether or not your firm can provide auditing services to a client that owns a small, privately owned bank and a used car dealership. To perform work for the client you want to see the rules on how the firms will remain independent from the bank and car dealership, and you have a week to research any questions or concerns that you have with the potential client.
The five fundamental ethical principles of the Australian Accounting Profession as listed in APES 110 Code of Ethics of the Australian Accounting Profession are integrity, objectivity, and professional competence and due care, confidentiality and professional behaviour.
“ In order to prevent fraudulent financial reports and statements, the American Institute of Certified Public Accountants(AICPA) has created ethical standards” (Ethical standards in a financial statement, 2011). These standards aim to make financial professionals accountable for their accounting practices. This includes the integrity of financial reporting and ensuring financial reporting is done fairly and factually. Financial accountants and professionals should maintain professional integrity, objectivity, and independence to reduce the risk of resulting legal action, loss of profits, and a poor reputation if improper financial reporting is done (Ethical standards in a financial statement, 2011).
Accountants are held to a higher ethical standards and they must performed their duties in compliance with standards or ethical values of honesty, integrity, objectivity, due care, confidentiality, which must be fully committed to. They must put clients or public interest first before their own. They must have and ethical values and maintain those values way beyond what the society or the company’s code of ethic. It is important that accountants’ behavior or ethical values is in conformity with the
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
Understanding utilitarianism for the accounting profession and how it is affected by following the AICPA ethical standards is critical for determining its relevance from a Christian worldview.
Accounting and management are the major pillars of an organization that contributes to the country’s economy. Introduction of AICPA Code of Professional Conduct helps in controlling the business operation especially in the accounting and management departments. Accounting and management fraud have been experienced whereby through corruption or other means, entrusted managers and accountants tend to be selfish in undertaking their duties. These factors are well addressed by the AICPA Code of Professional Conduct principles. Therefore, the study seeks to introduce two case studies whereby the management fraud have been experienced. Furthermore, the study will incorporate the use of AICPA Code of Professional Conduct in controlling the situation to ensure harmonious business operation in the management.
The AICPA is a Code of Professional Conduct that inform individuals what they are mainly accountable for and what their performance on professional services should be comprise of. Throughout these codes, there are many guidelines that range from the most to least authoritative. The principles provide and overview of what the code of conduct is, meanwhile the set of guidelines helps enforces the code to individuals. The code of conduct has four parts including the preface, a part that applies to the individual in the public practice, business members, and the rest of other individuals.
the AICPA ( American Institute of certified public accounting) values and vision statement said that they are committed to upholding the highest ethical standards to maintain trust and credibility with colleagues, members and the public. Obviously, Thorne will violate the rules if he accept this
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).
The AICPA Code of Professional Conduct, regardless of its numerous strengths, the Code of Professional Conduct has some serious weaknesses. The accounting profession is constantly changing and making improvements. The first weakness in the Code of Professional Conduct deals with conflictions within the code due to the code being constantly updated (Dienhart, 1995). Dienhart, Lunday, and Tavani have all criticized professional codes because the directives cause conflictions with one another, whether it is direct or indirect. Rule 301 and SAS No. 99 are examples when the code is having conflicting standards. Rule 301, Client Confidential Information, states that professionals shall not
For the presentation of the literature review, the author used a logical methodology by first explaining the study’s purpose, search strategy, and the basis for the theoretical framework. Delving into the historical literature, the author focused on agency theory, the principal-professional relationship, early IFRS research, and the rationale behind IFRS’ CPE for the Certified Professional Accountant (CPA). Switching gears to current literature, the author again focused on the principal-professional relationship and CPE rationale, and ended the section with a review of IFRS’, its status in the United States, and results from other adopting IFRS in other countries. The author summarized the literature review emphasizing the need for IFRS’ CPE as a responsibility of accountants under the principal-professional relationship through motivation by the professional (accountants) and the profession (accounting agencies).
Following this event the Securities and Exchange commission was created to administer various securities acts and to prescribe accounting principles and reporting practices (Schroeder, et. al, 2014, p. 6). Subsequently, the American Institute of Certified Public Accountants (AICPA) was given the opportunity to create accounting standards for companies to follow. But dissidence cropped up as disagreements arose with how members would be selected and the timeframe it took to bring the potential regulations to the public.
In Ireland, the Irish Auditing and Accounting Supervisory Authority (IAASA) was set up conformity to the provisions of Part 2 of the Companies (Auditing and Accounting) Act, 2003 (the Act). IAASA’s objectives under section 8 of the Act include the supervision of how the recognized accountancy organizations control and monitor their members and the promotion compliance to high professional standards in the auditing and accountancy profession