Question

Which of the following are principles of the AICPA Code of Professional Conduct? (Mark all that apply)

		Conservatism
		Integrity
		Due Care
		Objectivity and Independence

Answer 1

The Correct Answer would be Integrity, Due Care, Objectivity and Independence

Integrity - As users of the financial statements rely on financial statements audited by the auditor. The auditor must maintain highest integrity while discharging his duties.Integrity requires the member to maintian client confidentiality. The information gained through the course of discharging his duties must not be disclosed to anyone except with prior permission of his client or when the law or regulations require disclosure of such information. He should not look for his personal interest over the interest of the public.The members are also required to observe the principles of Objectivity and Due Care.

Due Care : A member should be due dilligent and must not be grossly negligent while performing his professional duties. He should abide the professional and ethical standards and he should continously work towards improving the quality of services provided by him. While performing an professional activity the member must make a proper plan to perform such activity and he should continously monitor the activities.He should discharge his duties as a member to the best of his ability.

Objectivity and Independence - A member performing services must remain independent at all times during the course of such services. The principle of Objectivity requires the member to be impartial, intellectually honest and free of conflicts on interest. Independence enhances the member's ability to act with integrity to be objective and maintain an attitude of professional skepticsm. A member in practice shall continously assess the relationship with client and public responsibility as required by the principles of Objectivity and Independence.The members who are not in practice must maintain objectivity while rendering professional services.