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To whom does the AICPA code of professional conduct apply?
- All members including those in:
- Pubulic Practice
- Private industry
- Government
- Education
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The AICPA code of professional conduct recognizes responsibility to the (3): (this is a shared trait with other professions)
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The AICPA code of professional conduct recognizes responsibility: Requires responsibility more than
(this is a shared trait with other professions)
just following the law
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The AICPA code of professional conduct: Helps maintain public _____ in the profession
(this is a shared trait with other professions)
confidence
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The AICPA code of professional conduct requires unswerving commitment to ____ ____, even at personal sacrifice.
(this is a shared trait with other professions)
honorable behavior
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Rules or standards governing the conduct of members of a profession (Dr. Johnson thinks this is a narrow definition)
AICPA definition of Ethics
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Distinguishing features of the AICPA code of professional conduct (3)
- Acceptance of responsibility to the public sets a profession aside.
- AICPA members are responsible to all who use their professional services
- The public interest is the "collective well-being of the people and institutions" the profession services
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Six Principles of the AICPA Code
- Responsibilities
- Pubilc Interest
- Integrity
- Objectivity and Independence
- Due Care
- Scope and Nature of Services
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One of the principles of the AICPA Code: Exercise sensitive professional and moral judgment in ALL your activities
Responsibilities
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One of the principles of the AICPA Code:
Act in a manner that:
Serves the ______ _______
Honors the public trust bestowed on you
Demonstrates your commitment to professionalism
Public Interest
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One of the principles of the AICPA Code: In order to maintain and broaden public confidence, you must perform all your professional responsibilities with the highest sense of _____.
Integrity
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One of the principles of the AICPA Code:
Maintain ______ and be free of conflicts of interest in discharging your professional duties
If you work for a public accounting firm that provides audit and attestation services, you should be _____ in fact and appearance.
Objectivity and Independence
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means you are
impartial
intellectually honest
free of conflicts of interest
objectivity
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means you are not involved in relationships that may appear to impair your objectivity
independence
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One of the principles of the AICPA Code: Follow the technical and ethical standards of the profession.
Always try to improve: your competenece and the quality of your service
Carry out your professional responsibilities to the best of your ability
Due Care
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One of the principles of the AICPA Code: Observe all of the preceding pronciples in determining the scope and nature of services that you will provide.
Scope and NAture of Services
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For scope and nature of sercies ask yourself two questions before agreeing to undertake a job
- 1. Do I have the competence for this job?
- 2. Can I be objective/independent in this situation?
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The six principles of the AICPA code are the Pillars of the code. They serve as the foundation for:
- Rules
- Interpretations
- Rulings
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Rule 102: In performing professional services you must:
- Maintain objectivity and integrity
- Befree of conflicts of interest
- Not knowingly misrepresent facts or subordinate your judgement to others
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Among other things you must be honest and candid. This is measured in terms of what is right and just. The AICPA interprets this to mean you can't knowingly misrepresent information.
integrity
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Violations of Rule 102: Objectivity and Integrity
- 1. you make, permit, or direct someone to make false or milseading entries in financial states.
- 2. You fail to correct financial statements that are false and misleading whne you have the authority to record an entry
- 3. You sign, permit, or direct someone else to sign a document that has materially false and misleading information
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Integrity: If you work for an entity that has an otside accountant or auditor:
- you must be candid
- you can't knowingly misrepresent facts
- you can't knowingly fail to disclose material facts
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Integrity: When performing professional services you can't knowingly
misrepresent facts or subordinate your judgement
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Step one if you and your supervisor disagree on how something has been reported
- consider whether the approach your boss wants to follow is an acceptable
- alternatitve that doesn't materially misrepresent the facts.
- If you've concluded this is the case after doing adequate research and consultation you don't need to do anything further. (document)
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Step two if you and your supervisor disagree on how something has been reported
- If you still disagree make your concerns known to appropriate higher levels of management and document
- how you understand the facts
- the acct principles involved
- how the principles apply to the facts
- the parties you discussed it with
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Step three if you and your supervisor disagree on how something has been reported
- If appropriate actions are not taken, then:
- Consider your continuing relationship with the employer.
- Consider responsibilities you may have to communicate to third parties, such as regulaory authorities or the outside auditor.
- Good idea to consult with your own lawyer.
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