The American Institute of CPA’s
The American Institute of CPA’s (AICPA) provides a Code of Professional Conduct to its members. The purposes of the Code are to protect the public and raise public confidence in the profession, to provide guidance in respecting the confidentiality of clients and employer’s, and to maintain these high standards through the sharing of information with members.
Protect the Public
The first purpose, protection of the public and to raise public confidence in the accounting profession, is explained in the first section by asking members to behave honorably, even if it means the loss of any personal advantage (AICPA, 2013). The Articles and Rules describe the need for CPA’s to keep foremost in their thoughts that actions should always serve the public interest and raise the level of the public’s trust towards the profession. There is a clearly defined framework that outlines how to maintain integrity, objectivity, independence, and due care. Additionally, there is a section on the general standards and compliance with accounting principles.
Protect the Client
The second purpose is to provide the accounting profession guidance on how to balance the protection of the public with the rules of confidentiality of their clients and employer’s. This is accomplished by the inclusion of a section devoted to the responsibilities of CPA’s to their clients. This section provides numerous rules on how CPA’s should conduct themselves in regards to confidential information, contingent fees, and offers ethical rulings on the responsibilities to clients (AICPA, 2013). This area is of particular concern during times when information becomes known to the CPA concerning accounting standards not met and the CPA must decide on the best way to protect the public and still honor the confidentiality agreements of the client.
Protect the Profession
The third purpose is encourage a participation of learned experiences that assist other CPA’s to develop and maintain the highest degree possible of independence, objectivity, and integrity. This is done through the sharing of information throughout the code, including the final section of Other Responsibilities and Practices (AICPA, 2013) which outlines discreditable acts, rules on commissions and fees, and the naming of firms.
A Progressive Code
The AICPA reinforces these purposes with yearly updates of each section, including ethical rulings on each of the sections. In this way, the Code is progressive; eliminating or modifying existing rules to accommodate new accounting practices. However, the principles of the Code will remain the same; a commitment to behaving in a manner that brings honor to the profession, regardless of the personal sacrifices necessary to do so (AICPA, 2013).