Question

Have you ever wondered whether a licensed CPA could lose his or her license to practice for violating the AICPA code of conduct? Each state board of accountancy regulates and controls licensure of professional CPAs. As a licensed CPA, you will need to be familiar with the legal liabilities that apply to accountants within the framework of the AICPA code of conduct. It would be outside the scope of this course to examine all U.S. state laws that govern licensed CPAs. Please review the repercussions to a CPA for violating the code and post your responses to this thread. Do you think they are too strong or not strong enough?

Answer 1

As the support for risk management and COSO ERM grows AICPA stood as a leader supporting issues in the arrears of GRC as AICPA aims to ensure that the firm complies with the relevant quality control standards. It involves reviewing selected audits and review engagements of the firm. AICPA is designed to review and evaluate that portion of firms accounting and auditing practices that are not subjected to inspect by PCAOB.The PCAOB is only required to inspect firms that audit public US companies, while any firm that is a member of AICPA participates in AICPA peer review program.

CPA’s should be more concerned about the issues in the area of Enterprise Risk Management within the next decade in order assess himself with the AICPA and to ensure that his knowledge will be well equipped with the of the COSO framework with ERP.

As we can also see that Sarbanes-Oxley Act of 2002 (SOX) requires all publicly held companies to establish and maintain the internal controls the are adequate to their business standards and procedures for financial reporting to reduce the risk of corporate frauds.

Sox enhance the corporate transparency to protect the interest of the shareholders in relation to the financial reports.

It assess both design and operating effeteness of the internal controls related to significant accounts and their related assertions in the context of material misstatements in the financial reporting frame work.

Evaluate the company’s internal controls with that of the COSO frame work

Evaluate the controls to prevent and detect the fraud and ensures that the management cannot override the controls in preparation and presentation of such financial reports

Evaluate the controls set for the financial reporting

Checks for the adequacy of the controls in relation to financial reporting.

CPA should ensure that he maintained adequate knowledge in the aspects will help him to get stabilized with the changes of ERP and Risk management techniques in the next decades.

So upon joining the AICPA the members are bond to adhere to the code of professional conduct and bylaws however in case there is any such violation then the ethics division will come in the picture to tackle the misbehavior with displianary actions or revocation or suspension of the membership.