Question

Summarize the AICPA Code of Professional Conduct’s six principles.

Answer 1

The AICPA Code of Conduct is based on six principles; (1) responsibilities (2) serve the public interest (3) integrity (4) objectivity and independence (5) due care and (6) scope and nature of services. These principles are required practices for all certified public accountants who are members of the AICPA. The principles are the required behavior for accountants and lay the groundwork for specific rules of accounting. “The Principles of the Code…express the profession’s recognition of its responsibilities to the public, to clients, and to colleagues. They guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The nature and purpose of the Code of Conduct is to provide guidance for accounting practitioners in the conduct of their professional affairs. These principles were designed to provide the conceptual framework for specific accounting rules that all AICPA members must follow in their course of business. Accountants have an ethical responsibility to three main groups; the public, their clients, and colleagues. The implementation of the code starts with behavior. Accountants have to be willing to change their behavior to meet the needs of these principles for the code to work properly.

·Responsibility – Accountants have a responsibility to use professional and moral judgement in all their activities

·Serve the public interest – Accountants must act in a way that serves the public interest.

·Integrity – Accountants must perform all work with a high sense of integrity which is an important character trait in this profession. It is a way of determining what is right and just.

·Objectivity and Independence – Accountants have to remain objective and cannot get to close to a client. They must also remain independent of their clients with no conflicts of interest.

·Due Care - A member should observe the profession's technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member's ability.

·Scope and Nature of Services - A member in public practice should observe the Principles of the Code of Professional Conduct in determining the scope and nature of services to be provided.