The American Institute of Certified Public Accountants is the rule-making and standard-setting body of the CPA profession. AICPA membership is not a requirement of the CPA profession, but it does help accounting professionals stand out by proving they’re being held to a higher professional and ethical standard. Membership also helps CPAs stay up to date with the most recent changes within the industry. Like we said, becoming a member of the AICPA isn’t necessary, but it may be a great move for your career; members are connected to a network of over 400,000 other CPAs who help guide each other through current careers, career advancement, and career changes. If you’re a member or are considering membership, it’s good to be aware of the AICPA’a Code of Professional Conduct to ensure you’re holding yourself to the high ethical standards of the AICPA. Below, we’ll cover what you need to know about the AICPA’s Code of Professional Conduct. It’s Consistently Being Updated While the Code of Professional Conduct was last revised on December 15th, 2014, it includes new, revised, and pending interpretations and other guidance pertinent to more recent changes in the industry. The Code includes new and revised interpretations that include Information Systems Services, Hosting Services, and other guidance, while the pending interpretations also include Information System Services updates. These interpretations provide guidance for CPAs as the profession becomes more technologically dependent. CPAs should spend some time each year reviewing the updated interpretations and guidance to ensure they’re staying up to date on any relevant updates. It Consists of Six Main Principles The Principles of Professional Conduct are found in the Preface portion of the AICPA Code of Professional Conduct and are applicable to all AICPA members. Outside of the six main principles we’ll cover below, the AICPA Code of Conduct notes that these are the basic principles of professional conduct. Members should consistently be evaluating situations and going above and beyond the principles when it comes to ethical behavior.
It Covers Three Main Sections There are three parts of the AICPA Code of Professional Conduct that seek to cover all the roles a CPA may encounter in their profession. Members should consider which category they fall into and review and adhere to that category’s rules.
It Isn’t the Only Code to Consider The AICPA’a Code of Professional Conduct is meant to be a general framework, but there are several governing bodies that need to be considered when we approach the topic of ethics. The first ethical guidance members and all CPAs should look to is the ethical requirements of their state CPA society and/or state board of accountancy. After reviewing the ethical information provided by your state, the AICPA notes you should also consider the ethical regulations of the following governing bodies:
While membership in the AICPA is not required, those that are members need to ensure they’re holding themselves to the ethical standards mentioned above. You can review the AICPA Code of Professional Conduct in its entirety at the AICPA’s website.
Answer 1:- a. AICPA PEEC The PEEC is the AICPA committee that makes and enforce all rules of conduct for CPAs who are AICPA members, although those CPAs who are not members of AICPA are also required to adhere to the rules. AICPA has two sections.The first section of AICPA code of professional conduct embodies principles to which CPAs should adhere. The second section contains enforceable rules. The PEEC also publishes interpretation of the code of professional conduct which are the application of the rules to specific business situation. b. SEC The SECs jurisdiction covers only public companies that are required by federal securities laws to file financial statements audited by independent accountants. The SEC has federal authority to regulate the public accounting to protect the reliability and integrity of financial statements and to enhance investor confidence c. PCAOB The PCAOB is responsible to set standards for public accounting firm and to oversee quality control,ethics and independence issues for accounting professional who audit financial statements of public companies.All rule proposed by the PCAOB are required to be approved by SEC. d. IFAC IFAC promulgates guidelines for the audit of multinational companies.it is responsible for the code of ethics for professional accountant to govern the audit of multinational companies. Recommended textbooks for you Business/Professional Ethics Directors/Executives... Auditing: A Risk Based-Approach (MindTap Course L... Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg Publisher:Cengage Learning Contemporary Auditing Auditing: A Risk Based-Approach to Conducting a Q... Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg Publisher:South-Western College Pub Administration Of Wills/Trusts/ And Estates Business/Professional Ethics Directors/Executives... ISBN:9781337485913 Author:BROOKS Publisher:Cengage Auditing: A Risk Based-Approach (MindTap Course L... ISBN:9781337619455 Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg Publisher:Cengage Learning Contemporary Auditing ISBN:9781337650380 Author:KNAPP Publisher:Cengage Auditing: A Risk Based-Approach to Conducting a Q... ISBN:9781305080577 Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg Publisher:South-Western College Pub Administration Of Wills/Trusts/ And Estates ISBN:9781285281308 Author:Brown Publisher:Cengage |