AICPA Rules of Professional Conduct Gina Crete, Candice Fuller, Jerrel Jones, Patricia Williams ETH/557 January 12, 2015 Lisa Kreuger The governing of the behavior of Certified Public Accountants (CPA) is done by the American Institute of Certified Public Accountant (AICPA). The largest professional association for the CPAs is the AICPA. The purpose of the AICPA is to equip CPAs to fulfill their duties to the public sector. Five Sections of the AICPA Rules of Professional Conduct There are five sections to the AICPA Rules of Professional Conduct: Independence, Integrity, and Objectivity, General Standards Accounting Principles, Responsibilities to Clients, Responsibilities to Colleagues, and Other Responsibilities and …show more content…
Accountants must not ensure clients that if their auditing services are used it will make them look better than if they used other companies. Section four of the AICPA Rules of Professional Conduct is Section 400 – Responsibilities to Colleagues. This section is currently not being used. This section is being saved for future rules on the responsibilities to one’s colleagues. The purpose of this section is for accountants to know what should take place when someone does something illegal and must be addressed. It is also important to make sure that their own actions are accounted for when it comes to working with others in the financial field. Section five of the AICPA Rules of Professional Conduct is Section 500 – Other Responsibilities and Practices. This section is for any and all rules that do not fall under the first four sections. The rules under this section currently cover acting discreditable, advertising and other forms of solicitation, commission and referral fees, and form of organization. Nature, Purpose, and Implementation of Each Rule There are four rules in this section of the code. Rule 501- acts discreditable serves one main purpose is to ensure that no harm will be brought to reputations bases upon ones actions by dishonorable acts. Just like many other corporations it is inappropriate to discriminate in any manner. One must also make sure that they are following
Given the CPA firm is auditing financial statements. Why would they need to understand anything about the clients' business?
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
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
Under Rule 102 “Integrity and Objectivity”, all professional services by a CPA should be rendered with objectivity and integrity, avoiding any conflict of interest. Additionally, a CPA should not knowingly misrepresent facts or subordinate his or her judgement to that of the client.
Board members, executive staff and all exempt and non-exempt staff are expected to abide by the following behavioral principles:
SCOPE AND APPLICATION Accounting Professional & Ethical Standards Board Limited (APESB) issues APES 110 Code of Ethics for Professional Accountants (this Code). This Code is operative from 1 July 2011 and supersedes APES 110 Code of Ethics for Professional Accountants (issued in June 2006 and subsequently amended in February 2008). Earlier adoption of this Code is permitted. Transitional provisions relating to Public Interest Entities, partner rotation, non-assurance services, Fees – relative size, compensation and evaluation policies apply from the date specified in the respective transitional provisions (refer page 132). All Members in Australia shall comply with APES 110 including when providing Professional Services in an honorary capacity. All Members practicing outside of Australia shall comply with APES 110 to the extent to which they are not prevented from so doing by specific requirements of local laws and/or regulations. This Code is not intended to detract from any responsibilities which may be imposed by law or
The AICPA Code of Professional Conduct is the foundation of ethical reasoning in accounting. The Code of Conduct typically is used to discuss the ethical obligations of CPAs. The principles guide members in the performance of their professional responsibilities and call for an unyielding commitment to honor the public trust. Although CPAs cannot legally be held to these principles, they do represent the expectations for them on the part of the public in the performance of professional services. Excello must be cautious to follow the rules of due care, general public interest and honesty.
Professional accountants are required to comply with the fundamental principles of APES 110 code and apply to the “conceptual framework approach” in order to determine their compliance with the fundamental principles whenever they know that situation or relationships may compromise their compliance. While the responsibility is on the professional accountant to do this, the bulk of APES 110 code of ethics explains how the conceptual framework works in specific situations, for example when receiving gifts or other inducements form a superior may threaten corporate accountants independence. (Catherine Allen, 2010). Like the FIA code, the APES 110 provides guidance for the more ordinary but certainly not all applied situations. In all the other instance, once a threat is recognized, the APES 110 requires a professional accountant to evaluate the significance of the threat and if the treat is irrelevant, no further evaluation is required, or if the threat is relevant than consider whether safeguards could eliminate or adequately reduce the threat to an acceptable level. Despite the principles vs. rule argument, the APES 110 code of ethics does contain actually rules, in several instance the code states that the threat are so significant that no safeguards can be functional to reduce or eliminate treats to an acceptable level for example, an audit team member could not own stock in his or her client and apply safeguards to ease the threat to independence because the APES 110 code of ethics prohibits audit team members from investing in their clients. (Catherine allen,
Our Code requires compliance with MillerCoors policies, guidelines and the law including anti-corruption and bribery laws that apply to our work, such as the Foreign Corrupt Practices Act and the UK Bribery Act. MillerCoors employees are responsible for understanding and following the Code and are required to annually complete training and affirm the Code. The principles in our Code also apply to all MillerCoors officers and directors.
The AICPA Code of Professional Conduct does not address the issue of personal client relationships. It would be extremely difficult to outline every situation that would jeopardize independence. In situations not addressed by The Code CPAs must use the judgment of a reasonable person aware of all facts to determine if independence is threatened (Messier, 658).
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
Chartered Professional Accountant(CPA) is a professional designation that is replacing those granted by the three former accounting bodies in Canada: Canadian institute of chartered Accountants(CA), Certified General Accountants Association of Canada(CGA) and Certified Management Accountants of Canada(CMA).
The International Federation of Accountants (IFAC) provides professional ethics and ethical codes for Accountants. They include standards of behaviour that are designed for both practical and idealistic purposes. In the accountancy profession, professional accountants should follow a set of rules and values to be able to execute the objectives needed to the highest standard of so called professionalism. IFAC requires throughout the world that accountancy bodies should issue codes of conduct not less rigorous than its own. Members are required to examine the spirit of the code as well as the specific requirements. Disobedience can lead to disciplinary proceedings. More specific guidance is included in the codes for accountants engaged in
Accountants are trusted and respected all around the world. After all, this profession has been around for many years; there is proof that accounting methods were used by ancient Egyptians for inventory purposes. The accounting profession has many certifications; one of them is Certified Public Accountant, also known by its acronym, CPA. By far, the one with the most advantages is CPA because it is required by almost any accounting firm, provides mobility across the industry, and provides better economic remuneration. Acquiring the certification is not easy; the CPA examination is known to be difficult and challenging, having four parts and a passing rate of only 50 percent. It also requires continuing education since there are constant changes in laws. Once the certification is acquired, the rewards are greater than the sacrifice. CPAs are currently in high demand, and that is only increasing every year; this is great for job opportunities and for remuneration. Accountants have always had good salaries, but being in high demand increases the chances of having even better salaries. Before, CPAs were thought of as bookkeepers and tax makers, but now they are much more than that. Companies don’t make business decisions before consulting with their accountants, after all, no one knows the economic situation of a company better than the accountant.
And another code is “Act responsible and within authority” this helps the employee to be disciplined, responsible and take accountability for the risks employee take and make sure they are appropriate to the business or activity, Employee must keep to banks limits and policies and not make decisions that are beyond employee’s delegated authority. Likewise all 26 codes are there to make sure that the employee is behaving correctly within the working environment and it affect or changes their behavior