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.
What is the purpose of the aicpa code of professional conduct?
The code establishes standards for auditor independence, integrity and objectivity, responsibilities to clients and colleagues and acts discreditable to the accounting profession . The AICPA is responsible for drafting, revising and reissuing the code annually, on June 1.
Who does the aicpa Code of Professional Conduct apply to?
1. Whom does the Code of Professional Conduct govern? Bylaw section 230 explains that the Code applies to all individuals that are members of the American Institute of Certified Public Accountants .
Who is a covered member under the code of Professional Conduct?
A covered member is an individual on an attest engagement team , an individual in a position to influence an engagement team, a partner or manager who provides 10 or more hours of nonattest services to an attest client per year, a partner in the office in which the lead attest engagement partner practices in connection ...
How do I reference aicpa code of professional conduct?
Recommended Citation
American Institute of Certified Public Accountants, “AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2007” (2007).
What are the six ethical principles stated in the Code of Professional Conduct?
The principles are: Responsibilities Principle, The Public Interest Principle, The Integrity Principle, Objectivity and Independence Principle, Due Care Principle, and the Scope and Nature of Services Principle .
What is the code of professional conduct?
A professional code of conduct is a document that explains to employees how they are expected to act on behalf of their company . A code of conduct can include elements like the values of the business, disciplinary steps, and responsibilities.
What are the principles of professional conduct?
- Adhere to the highest standards of professional conduct.
- Strive for impartiality and objectivity when dealing with others.
- Communicate openly and honestly with colleagues and clientele.
- Maintain confidentiality in professional relationships.
When was the code of professional conduct created?
The Code of Professional Responsibility governed legal ethical conduct and was created by the American Bar Association (ABA) in 1969 .
Can a covered member receive gifts from a client?
114 under Rule 101 allows a covered member who is not on the attest engagement and not in a position to influence the attest engagement to accept a gift from an attest client of the firm provided the gift is “reasonable in the circumstances ”.
Can a firm be a covered member?
Covered member.
This term refers to an individual, firm or entity capable of influencing an attest engagement .
What are the five key requirements for auditor independence?
The SEC rules on audit independence can be organized into five key areas: (A) Prohibited Non-Audit Services ; (B) Audit Committee Pre-Approval of Services; (C) Partner Rotation; (D) Conflict of Interest; and (E) Increased Communication and Disclosure.
What is the most common type of attest engagement?
What is the most common type of attest engagement? What is most frequently being “asserted” by management on this type of engagement? – A financial statement audit . You just studied 36 terms!
What happens if you breach the aicpa code of professional conduct?
Expulsion and Suspension
However, the AICPA and your state society have the authority to expel or suspend your membership if their investigation concludes that you violated a Code of Conduct rule.
What are the code of ethics?
A code of ethics is a guide of principles designed to help professionals conduct business honestly and with integrity . ... A code of ethics, also referred to as an “ethical code,” may encompass areas such as business ethics, a code of professional practice, and an employee code of conduct.
What are the three categories of members under the aicpa code of professional conduct?
What are the three categories of members under the AICPA Code of Professional Conduct? The three categories of members under the Code of Professional Conduct are 1) members in public practice; 2) members in business; and 3) other members.
