What Are The Three Most Important Principles Of The AICPA Code Of Professional Conduct
AICPA Code of Professional Conduct
Jonathan Weindel
ETH/376
3/2/2015
Shanaika Muldrow
AICPA Code of Professional Conduct The AICPA Code of Professional Conduct is a voluntary group of CPA’s that embody the principle of “professional based responsibilities despite personal benefit or gain” (Mintz and Morris, 2011, page 14). The AICPA Code of Professional Conduct has six responsibilities that help CPA’s meet and exceed obligations to the public. These six responsibilities include responsibilities, the public interest, integrity, objectivity and independence, due care, and the scope and nature of services. Most importantly, this code of conduct is put into place to ensure the reliability, integrity, honesty, and unbiased information is put into place while serving a purpose to the community. The three most important principles of this code would be integrity, objectivity and independence, and the scope and nature of services.
The Three Most Important Principles …show more content…
The three most important principles of the AICPA Code of Professional Conduct include integrity, objectivity and independence, and the scope and nature of services.
Integrity is shown by CPA’s by providing the public “by honest and candid about confidentiality and not giving into personal gain and benefits over public trust” (Mintz and Morris, 2011, page 14-15). Integrity is an essential point in accounting due to the amount of detail that comes with the job. For people of the company and public, understanding and computing numbers is one job most would not understand, especially the ratios aspects. In other words, it would almost have to be obvious mistakes everyone would have to understand in order to point out
flaws.
Objectivity and independence are mostly pertaining to integrity but takes it a step further by maintaining impartiality to situations to hold companies accountable for servicing close links with companies. These relational links may become inappropriate in nature due to the relationship built over time. Should these relationships blossom further, these ties can become burdensome to holding impartiality. A vendor can abuse this relationship to ask for inappropriate accounting reporting that can turn the relationship very quickly.
The scope and nature of services provide detail into putting internal controls into place in order to maintain unbiased reporting. This may contradict the aspects of integrity and objectivity and independence; however, abuse can come from any direction depending how comfortable the person is. As mentioned before, some relationships can become very comfortable and can lead to asking for inappropriate actions on the part of the CPA. Internal control places barriers around these questions before they are asked which helps maintain unbiased reporting.
Conclusion
The AICPA Code of Professional Conduct includes six principles of which the three most important principles are integrity, objectivity and independence, and the scope and nature of services. These three outlined principles help maintain public trust by placing the job before personal gain or benefits. CPA’s have an ethical obligation to serve the public and withhold ethical standards. Putting these three critical values above all else will help gain public trust, displace personal gain, and maintain unbiased reporting.
References
Mintz, John. Morris, Roselyn. (2011). Ethical Obligations and Decision Making in Accounting. Retrieved from Mintz, John. Morris, Roselyn, ETH/376 website.
Jonathan Weindel
ETH/376
3/2/2015
Shanaika Muldrow
AICPA Code of Professional Conduct The AICPA Code of Professional Conduct is a voluntary group of CPA’s that embody the principle of “professional based responsibilities despite personal benefit or gain” (Mintz and Morris, 2011, page 14). The AICPA Code of Professional Conduct has six responsibilities that help CPA’s meet and exceed obligations to the public. These six responsibilities include responsibilities, the public interest, integrity, objectivity and independence, due care, and the scope and nature of services. Most importantly, this code of conduct is put into place to ensure the reliability, integrity, honesty, and unbiased information is put into place while serving a purpose to the community. The three most important principles of this code would be integrity, objectivity and independence, and the scope and nature of services.
The Three Most Important Principles …show more content…
The three most important principles of the AICPA Code of Professional Conduct include integrity, objectivity and independence, and the scope and nature of services.
Integrity is shown by CPA’s by providing the public “by honest and candid about confidentiality and not giving into personal gain and benefits over public trust” (Mintz and Morris, 2011, page 14-15). Integrity is an essential point in accounting due to the amount of detail that comes with the job. For people of the company and public, understanding and computing numbers is one job most would not understand, especially the ratios aspects. In other words, it would almost have to be obvious mistakes everyone would have to understand in order to point out
flaws.
Objectivity and independence are mostly pertaining to integrity but takes it a step further by maintaining impartiality to situations to hold companies accountable for servicing close links with companies. These relational links may become inappropriate in nature due to the relationship built over time. Should these relationships blossom further, these ties can become burdensome to holding impartiality. A vendor can abuse this relationship to ask for inappropriate accounting reporting that can turn the relationship very quickly.
The scope and nature of services provide detail into putting internal controls into place in order to maintain unbiased reporting. This may contradict the aspects of integrity and objectivity and independence; however, abuse can come from any direction depending how comfortable the person is. As mentioned before, some relationships can become very comfortable and can lead to asking for inappropriate actions on the part of the CPA. Internal control places barriers around these questions before they are asked which helps maintain unbiased reporting.
Conclusion
The AICPA Code of Professional Conduct includes six principles of which the three most important principles are integrity, objectivity and independence, and the scope and nature of services. These three outlined principles help maintain public trust by placing the job before personal gain or benefits. CPA’s have an ethical obligation to serve the public and withhold ethical standards. Putting these three critical values above all else will help gain public trust, displace personal gain, and maintain unbiased reporting.
References
Mintz, John. Morris, Roselyn. (2011). Ethical Obligations and Decision Making in Accounting. Retrieved from Mintz, John. Morris, Roselyn, ETH/376 website.