...Violence to AICPA ET Section 91 Applicability: Paragraph .01 says the bylaws of the AICPA require members to comply with the Code of Professional Conduct. The introduction reads, "A member who departs from interpretations or rulings shall have the burden of justifying such departure in any disciplinary hearing." Paragraph .01 .2: Requirement: CPAs will not knowingly ask or allow anyone they have authority or control over to carry out on the CPA's behalf, paid or not, any act that would be prohibited if committed by the CPA. Violation No. 1: You can't have someone do your dirty work. Paragraph .01 .3: A CPA is not to conclude that independence is not violated solely because of his inability to control the other person. Violation No. 2: CPAs cannot justify allowing unethical behavior with, "It's not my job." Or, as Lisa Snyder, the AICPA's professional ethics director, comments, "If a spouse invests in a CPA's client, even though the CPA does not `control' her spouse, she would no longer be independent." ET Section 100-1 Conceptual Framework for AICPA Independence Standards: Rule .20: Safeguards are defined as controls that eliminate or reduce threats to independence to an acceptable level. Violation No. 3: If anyone can bypass the CPA and order the CPA's subordinate to do something that the CPA will not do, then the CPA has violated the requirement to provide such independence safeguards. Rule 501 Acts Discreditable new interpretation: ET Section...
Words: 801 - Pages: 4
...practices to include lawsuits and liabilities from misreporting of an organizations portfolio. The American Institute of Certified Public Accountants (AICPA) enables an organization to follow appropriate guidelines and regulations that govern ethical accounting practices. Organizations conforming to the practices of the AICPA can ensure healthy accounting practices conducted in their organization. American Institute of Certified Public Accountants The AICPA is considered the foundation of ethical reasoning in accounting because According to Mintz and Morris (2011), the principles guide members in the performance of their professional responsibilities and call for an unyielding commitment to honor the public trust, even at the sacrifice of personal benefits. (Chapter Chapter 1, Ethical Reasoning: Implications for Accounting). The AICPA is founded on three underlining principles or fundamentals. They consist of public interest, integrity, and responsibilities. These principles as stated previously allow and guide professionals in delivering ethical practices for clients. It allows them to perform ethically sound actions even when no one is looking or observing. Public Interest Working in light of the public carries a sound profile. A trusted profile which defines an organization or profession that provides a service. The members of the AICPA strive to perform the utmost services for the public. The accounting profession’s public consists of a multitude of patrons. As a certified public...
Words: 662 - Pages: 3
...experience. * 2) Sets requirements for maintaining member’s professional competence. Licensed CPAs are subject to regulation by their respective state boards of accountancy and strict professional ethics rules adopted by the boards to protect the public against fraud, incompetence and conflicts of interest. In addition, members of the American Institute of CPAs have to adhere to the AICPA Code of Professional Conduct, which sets forth certain standards of professional conduct. The Statement on Responsibilities in Personal Financial Planning Practice establishes guidance for AICPA members who provide personal financial planning services. This guidance applies whether personal financial planning services are provided on a stand-alone basis or as part of another engagement, and whether such services are provided on a comprehensive, segmented or consultation basis. 3)Assists members in the continuing development of professional expertise. AICPA offers over 3,500 seminars nationwide which are sponsored by State CPA Societies. From government/not-for-profit to controllership, taxation to IFRS, AICPA covers...
Words: 540 - Pages: 3
...AICPA May 26, 2014 ETH/376 According to Ethical Obligations and Decision Making in Accounting, The America Institute of CPAs (AICPA) is an association made of up volunteer CPAs. Their main objective to ensure that CPAs continue to conduct their business in an ethical manner. The values described in the Code of Professional Conduct are based on common principles and virtues and designed to guide CPAs in a positive light and maintain professionalism with the public in the accounting world. The Principles described are: Responsibilities, Public’s Interest, Integrity, Objectivity, Independence, Due Care, Scope and Nature of Services (Mintz&Morris, 2011). I believe that the three most important principles are: Integrity, Public’s Interest, and Due Care. Integrity would be the most important to me. Dictionary.com states that integrity means, “Adherence to moral and ethical principles; soundness of moral character; honesty.”(Howe,2010). It is important that CPAs are honest with their work and with the public, and are able to say when they make mistakes as well. Accounting Ethics and Integrity Standards states that businesses, investors, and creditors need to be able to trust the financial records of a company; if there is false reporting then investors could be victims of fraud and could potentially lose large amounts of money. The same would go for creditors, they might never get their money back (Media&Petryni, 2014). Public Interest would be the second most important...
Words: 581 - Pages: 3
...Business Law and Taxation Final Pre-board Examination Batch 18 (October 2009) 1. The buyer acquires a real right to the fruits of the thing sold. a. From the time the obligation to deliver the thing arises b. From the perfection of the contract of sale c. From the delivery thereof d. From payment of the price 2. A buyer may sue the seller for breach of warranty against hidden defects of things a. Within 40 days from delivery of the thing sold b. Within 6 months from delivery of the thing sold c. Within 1 year from delivery of the things sold d. Within 4 years from discovery of the fraud 3. D is indebted to C in the amount of P200,000 and delivers to C his diamond ring by way of pledge. If D sells the same diamond ring to T, when will T acquire ownership of the same? a. From the time the sale is perfected between D and T b. From the time T pays the price to D c. From the time C consents to the sale between D and T d. From the time T obtains actual possession of the diamond ring 4. In a partnership, the partners share in the profits a. Equally b. According to capital contribution c. According to the contract d. Justly and equitably 5. This kind of agent merely makes the principal and the third person meet and when they arrive at an agreement or contract becomes entitled to compensation. a. Broker ...
Words: 4770 - Pages: 20
...经知识，拥有更好的职业发展，赢得更受尊重的社会地位。高顿学员攀上人生一个 个重要高峰的同时，高顿财经也赢得了日益增长的社会关注，获得了来自不同行业、 不同阶段层次的财经人士广泛认可。 成就年轻梦想 高顿财经优势——掌握财经教育核心资源 权威机构——高顿财经提供多项国际财经职业资格认证培训，是国内规模最大的财经 证书培训机构之一。 高通过率——考试通过率高于行业平均水平20%以上。 卓越研发——近千位财经精英组成教学研发团队，洞悉考试规律、研发教学工具及提 供海量题库。 强大师资——特别聘用从业经验丰富的财经持证人担任讲师，确保理论与实务操作紧 密结合。 学员关怀——上百名学员服务团队贴身伴学，为学员量身定制学习计划。 终身教育——每年数百场后续教育活动，提供终身受益平台。 成就年轻梦想 高顿财经服务——帮助学员快速获取职业认证 中国注册会计师 Certified Public Accountant 英国特许公认会计师 Chartered Certified Accountant 美国特许金融分析师 Chartered Financial Analyst 英国皇家特许管理会计师 Chartered Management Accountant 美国注册管理会计师 Certified Management Accountant 美国注册会计师 Certified Public Accountant 美国金融风险管理师 Financial Risk Manager 高顿财经联合政府部门、国际权威财经组织、 全球顶尖商学院、以及知名跨国企业，推广包括ACCA、 CIMA、AICPA、CFA、CMA、FRM、CPA、会计职称在内的，...
Words: 912 - Pages: 4
...AICPA Code The purpose of the AICPA Code of Professional Conduct (“Code”) and why it is considered the foundation of ethical reasoning in accounting is that it is a code that has been established and agreed to by members of the AICPA. This is important in that is establishes a foundation of ethical reasoning in that a regulatory body isn’t issuing rules, the Code was established and agreed to voluntarily by CPAs who are members of the AICPA. I believe the three most important purposes of the AICPA Code of Professional Conduct (“the Code”) are the following: 1. Establishment of rules related to the Public Interest 2. Establishment of rules related to Objectivity and Independence 3. Establishment of rules related to Due Care The following are reasons why I believe the three purposes of the Code, as stated above,are the three most important. My reasons are central to the belief in maintaining trust in the CPA profession after issues such as the Enron and Arthur Andersen scandal. Public Interest CPA’s conduct many types of engagements for a variety of stakeholders which rely upon CPAs to have the interests of the public in mind. The Code states this concept well as “a distinguishing mark of a profession is acceptance of its responsibility to the public. The accounting profession's public consists of clients, credit grantors, governments, employers, investors, the business and financial community, and others who rely on the objectivity and integrity of certified public...
Words: 1111 - Pages: 5
...Of the six Principles in the AICPA Code (Responsibilities, The Public Interest, Integrity, Objectivity & Independence, Due Care, and Scope & Nature of Services) I believe the three most important are Responsibility, Integrity and Due Care. While most of the principles are inter-related it is the customer/ public that must be taken care of first and not our personal interests. To protect the client we must first understand the responsibilities as a CPA. “The overriding responsibility of CPAs is to exercise sensitive and moral judgments in all activities. “ In meeting our obligations it is important to realize that our morals and ethics should be a huge factor in the way we conduct business and treat our clients (Mintz & Morris, 2011, Chapter Chapter 1). 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 and advantage; (3) observing both the form and spirit of technical and ethical standards; and (4) observing the principles of objectivity and of due care.” As professionals we must have the clients trust to fully do our jobs. If the client doesn’t trust you as a professional then how can they trust your work product. Even the perception of wrongdoing can lose all trust. CPAs must be able to not only always follow the rules, but also the appearance of always doing the correct thing (Mintz & Morris, 2011, Chapter Chapter...
Words: 881 - Pages: 4
...1. Each of the following elements make up an integral part of what is meant by "ethics" except for: A. Accepted standards of behavior B. Knowing the difference between right and wrong C. Always following the law D. The moral point of view 2. "Treating others fairly" encompasses treating them: A. Equally, impartially, and responsibly B. Equally, responsibly, and openly C. Impartially, openly, and diligently D. Equally, impartially, and openly 3. The Independence Principle in the AICPA Code applies to: A. All accountants and auditors B. All CPAs regardless of professional services C. All CPAs who render attestation services D. All members of the audit committee 4. In stage 1 of Kohlberg's model, ethical reasoning is motivated by: A. Fear of punishment B. Satisfaction of one's needs C. Following the law D. Acting based on universal ethical principles 5. Professional judgment in accounting includes each of the following attributes except for: A. Exercising due care in carrying out one's professional responsibilities B. Maintaining one's objectivity in decision making C. Maintaining one's integrity in decision making D. Acting in accordance with the moral point of view 6 Each of the following considerations should help to evaluate alternative courses of action in the decision making model except for: A. Whether the alternatives are consistent with professional standards B. Whether the alternatives are consistent with firm policies and its own code of...
Words: 699 - Pages: 3
...ETH/376 Accounting Ethics and Professional Regulations Week One Assignment – AICPA Code of Professional Conduct AICPA Code of Professional Conduct The AICPA Code of Professional Conduct represents the principles that “are based on the values of the profession and the traits of character that enable CPA’s to meet their obligations to the public” (Mintz & Morris, 2011). The AICPA Code of Professional Conduct has six essential principles to guide them in the performance of their profession. The six essential principles are: Responsibilities, the Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. All these principles need to be follow by the members of the AICPA. These principles link the professional conduct to moral judgment and recognize the responsibility that CPA’s have to his or her clients as well as the public. AICPA Code of Professional Conduct Principles The AICPA Code of Professional Conduct have six essential principles. The first principle is call “Responsibilities”, which protects the public of irresponsible and immoral behavior. The second principle is “The Public Interest”, which protects the best interest of stakeholders that includes the clients, credit grantors, government, investors, etc. The third principle is “Integrity” because this principle identify the public trust and CPA’s need to be candid and honest while maintaining client confidentiality. The fourth principle is “Objectivity and...
Words: 729 - Pages: 3
...What Is the Difference Between a Compilation, a Review and an Audit? Comparative Overview The level of service is determined by your needs as the client, and what your creditors and/or investors require. The higher the level of service required, the more time the CPA needs to complete the engagement and therefore the more costly the engagement. While privately held companies opt for compiled or reviewed statements, credit agreements with lenders often require audited statements. Compilation • Compiled financial statements represent the most basic level of service CPAs provide with respect to financial statements. • In a compilation engagement, the accountant assists management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. • In a compilation, the CPA must comply with Statements on Standards for Accounting and Review Services (SSARSs), which require the accountant to have an understanding of the industry in which the client operates, obtain knowledge about the client, and read the financial statements and consider whether such financial statements appear appropriate in form and free from obvious material errors. • A compilation does not contemplate performing inquiry, analytical procedures, or other procedures ordinarily performed in a review; or obtaining an understanding...
Words: 1242 - Pages: 5
...AICPA Code of Professional Conduct ETH/376 In order to understand the AICPA Code of Conduct you must understand the AICPA itself. The AICPA is a group of CPAs all around the world that volunteers to keep up the ethical obligations of CPAs. The AICPA Code of Conduct is known as the the foundation of ethical reasoning in accounting because it lays out the “law” accountants should follow in order to keep a good moral and ethics in the accounting profession. There are many purposes for the AICPA Code of Conduct but I feel that there are three that are more important than others. One purpose that I feel to be important is to keep the integrity of the accounting profession. As accountant clients hold us to very high standards. We are suppose to be honest, loyal and trust worthy. I feel that without the AICPA Code of Conduct laying out any type of foundation of integrity then CPAs would be viewed in so many negative ways. I don’t think I can stress enough how much ethics play into many professions not just accounting and how important that the AICPA Code of Conduct is based on ethical reasoning. Another purpose that I feel to be important is to look out for the client’s best interest. By looking out for what is best for the clients then as accountants it keeps jobs open and growing because no matter what kind of business you are you need someone to do accounting but if you don’t have a company of accountants or a personal accountant looking for your best interest as an owner than...
Words: 408 - Pages: 2
...AICPA Code of Professional Conduct Teresa K. Grimm 376 September 2, 2013 Sylvia Baughey AICPA Code of Professional Conduct I will be describing what the main reason of having the AICPA Code of Professional Conduct and why it’s the foundation of the ethical reason in the accounting world. I will also try to explain what I believe to be the most three important principles and why they are the most important. The main reason behind the AICPA Code of Professional Conduct is to uphold the standards and values of behavior in the community for all involved in the accounting profession. All of the principles of the AICPA Code are aspirational statements that form the main foundation for the Code’s enforceable rules. (Mintz & Morris, 2011) There are six principles to the code of professional conduct and they are, the public interest, objectivity and independence, due care, integrity, responsibility and scope and nature of services. (AICPA, 2013) When a member is using the Principles it will help guide him or her in a performance of his or her professional responsibilities and the call for an unyielding commitment to honor the public trust, even if it is at a sacrifice of personal benefits. (Mintz & Morris, 2011) I think the most three important principles of the Code would be integrity, the public interest and due care. Integrity is so important when a CPA is working with the public, because the CPA needs to gain the trust and confidentiality of his or her...
Words: 482 - Pages: 2
...AICPA Code of Professional Conduct Rebecca Moore ETH/376 August 18, 2014 Shanaika Muldrow The AICPA is a community of accounting professionals numbering at more than 350,000 from all over the world. The AICPA is a code of conduct that is formed on the bases of six principles. These principles are “responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature services” (Mintz & Morris, 2011). Each of these principles are used as a guide for the accountants performance of professional responsibilities and the commitment to uphold the publics trust even at the expense of personal benefits. This code of conduct is considered to be the foundation of ethical reasoning in the accounting field because it touches on all aspects of the accounting profession. It also protects all the parties that are involved, the accountant, investors, the public, and creditors. I believe that the three most important purposes of the AICPA is to protect the client, the public, and the accountant. I would say that the most important purposes of the AICPA because the client, the public, and the accountant are the individual parties that make a company succeed or fail. Protecting these individuals is accomplished by following the AICPA principles in all situations. The three main principles that do this are responsibilities, the public interest, and integrity. Accountants have responsibilities to anyone who employs their accounting services. They...
Words: 448 - Pages: 2
...“AICPA Code of Professional Conduct” ETH/376 The American Institute of Certified Public Accounts (AICPA) Code of Professional Conduct is a body of principals that has a goal to guide Certified Public Accountants (CPA’s) in the “performance of it professional responsibilities” (Mintz, 2011). The AICPA Code of Professional Conduct has six essential principles and they are: Responsibilities, the Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. Each of these principles is meant to be followed by the members of the AICPA. These articles are used to explain the responsibilities that CPA’s have to clients, colleagues and to the public. The first principle, Responsibilities, protects the public of irresponsible and immoral behavior. The Public Interest makes sure the public’s best interest is protected. The third and fourth principles guarantee that the trust of the public is greatest served; integrity, honesty and confidentiality are of highest importance, as well as objectivity and impartiality. The fifth principle deals with the level of quality service and competence that the public receives and deserves. The sixth principle ensures that CPA’s have good internal controls put into place, and makes sure that CPA’s are unbiased and free of conflict when performing an audit for a client. These principles are put into place to protect the public and also to protect CPA’s, because as they follow them they will ensure that...
Words: 417 - Pages: 2
