AICPA Code Of Professional Conduct Analysis
AICPA Code of Professional Conduct
Mindi Frost
ETH/376
12/15/14
Susan Paris
AICPA Code of Professional Conduct Formally known as the American Association of Public Accountants (AAPA) in 1887, the American Institute of Certified Public Accountants (AICPA) was renamed in 1957. With over 400,000 members, the AICPA provides services on a professional level and works with state CPA entities to ensure the public is protected. According to Mintz and Morris (2011), “The principles of the AICPA Code are aspirational statements that form the foundation for the Code’s enforceable rules. The Principles include (1) Responsibilities; (2) The Public Interest; (3) Integrity; (4) Objectivity and Independence; (5) Due Care; and (6) Scope and Nature Services.” …show more content…
(Page 14) The three most important principles are Responsibilities, Integrity, and Due Care.
Responsibilities
It is the responsibility of the AICPA to provide the accounting profession with standards, educational materials, the CPA exam, and monitors compliance with the ethical standards of Certified Public Accountants.
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 …show more content…
guidelines.
Integrity
Mintz and Morris (2011) continue to state, “As a principle of CPA conduct, integrity recognizes that the public trust is served by (1) being honest and candid within the constraints of client confidentiality; (2) not subordinating the public trust to personal gain an advantage; (3) observing both the form and spirit of technical and ethical standards; and (4) observing the principles of objectivity and independence and of due care.” (Page 14) It is important to uphold personal integrity as well as the integrity of the AICPA. One should never risk losing their integrity to advance their career. Maintaining client confidentiality is vital to a company’s success and repeat business. Having an employee who violates this confidentiality not only damages the image of themselves, but makes the public question the company in whole.
Due Care
Due care is important because it ensures that CPAs are continuing their education and improving their level of competency and provide quality service to all those they encounter.
In their book Ethical Obligations and Decision Making in Accounting, Mintz and Morris (2011) mention five areas of due care that call for continued improvement, “(1) performing professional services to the best of one’s abilities; (2) carrying out professional responsibilities with concern for the best interests of those for whom the services are performed; (3) carrying out those responsibilities in accordance with the public interest; (4) following relevant technical and educational standards; and (5) properly planning and supervising engagements.” (Page 14) Due care becomes violated if a CPA does not continue to improve their skills and continue with the education to stay current on the standards that have been established by the
AICPA.
Conclusion
Protecting the public by setting standards, educational materials, and exams for CPAs, the AIPCA can assist in companies gaining the trust of the public and maintaining that trust. If a CPA does not uphold the ethical standards, the public would lose their trust in the individual or company. It is in the best interest for the CPA to continue their education and become a member of the AICPA to ensure they have the access and support needed to continue with these standards.
References
Mintz, Steven M, DBA, CPA, Morris, Roselyn E, PhD, CPA (2011). Ethical Obligations and
Decision Making in Accounting. Text and Cases, Second Edition. McGraw-Hill Company.
American Institute of CPA (2014). AICPA Mission and History. Retrieved December 15, 2014 From www.aicpa.org.
Mindi Frost
ETH/376
12/15/14
Susan Paris
AICPA Code of Professional Conduct Formally known as the American Association of Public Accountants (AAPA) in 1887, the American Institute of Certified Public Accountants (AICPA) was renamed in 1957. With over 400,000 members, the AICPA provides services on a professional level and works with state CPA entities to ensure the public is protected. According to Mintz and Morris (2011), “The principles of the AICPA Code are aspirational statements that form the foundation for the Code’s enforceable rules. The Principles include (1) Responsibilities; (2) The Public Interest; (3) Integrity; (4) Objectivity and Independence; (5) Due Care; and (6) Scope and Nature Services.” …show more content…
(Page 14) The three most important principles are Responsibilities, Integrity, and Due Care.
Responsibilities
It is the responsibility of the AICPA to provide the accounting profession with standards, educational materials, the CPA exam, and monitors compliance with the ethical standards of Certified Public Accountants.
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 …show more content…
guidelines.
Integrity
Mintz and Morris (2011) continue to state, “As a principle of CPA conduct, integrity recognizes that the public trust is served by (1) being honest and candid within the constraints of client confidentiality; (2) not subordinating the public trust to personal gain an advantage; (3) observing both the form and spirit of technical and ethical standards; and (4) observing the principles of objectivity and independence and of due care.” (Page 14) It is important to uphold personal integrity as well as the integrity of the AICPA. One should never risk losing their integrity to advance their career. Maintaining client confidentiality is vital to a company’s success and repeat business. Having an employee who violates this confidentiality not only damages the image of themselves, but makes the public question the company in whole.
Due Care
Due care is important because it ensures that CPAs are continuing their education and improving their level of competency and provide quality service to all those they encounter.
In their book Ethical Obligations and Decision Making in Accounting, Mintz and Morris (2011) mention five areas of due care that call for continued improvement, “(1) performing professional services to the best of one’s abilities; (2) carrying out professional responsibilities with concern for the best interests of those for whom the services are performed; (3) carrying out those responsibilities in accordance with the public interest; (4) following relevant technical and educational standards; and (5) properly planning and supervising engagements.” (Page 14) Due care becomes violated if a CPA does not continue to improve their skills and continue with the education to stay current on the standards that have been established by the
AICPA.
Conclusion
Protecting the public by setting standards, educational materials, and exams for CPAs, the AIPCA can assist in companies gaining the trust of the public and maintaining that trust. If a CPA does not uphold the ethical standards, the public would lose their trust in the individual or company. It is in the best interest for the CPA to continue their education and become a member of the AICPA to ensure they have the access and support needed to continue with these standards.
References
Mintz, Steven M, DBA, CPA, Morris, Roselyn E, PhD, CPA (2011). Ethical Obligations and
Decision Making in Accounting. Text and Cases, Second Edition. McGraw-Hill Company.
American Institute of CPA (2014). AICPA Mission and History. Retrieved December 15, 2014 From www.aicpa.org.