AICPA Code of Professional Conduct
The AICPA Code of Professional Conduct is a set of ethical guidelines and principles that govern the professional behavior of Certified Public Accountants (CPAs) who are members of the American Institute of Certified Public Accountants (AICPA). The Code of Professional Conduct is designed to help CPAs maintain the highest level of integrity, objectivity, and professionalism in their practice.
It consists of several key components:
- Principles: The Code of Professional Conduct is founded on six basic principles, which provide a framework for ethical behavior. These principles include:
- Responsibilities: CPAs have a responsibility to act in the public interest, fulfill their duties, and maintain professional competence.
- The Public Interest: CPAs must serve the public interest and maintain public confidence in the profession.
- Integrity: CPAs must demonstrate integrity by being honest, candid, and impartial in their professional relationships.
- Objectivity and Independence: CPAs should maintain objectivity and independence in their professional judgment, avoiding conflicts of interest and bias.
- Due Care: CPAs must exercise due care by being diligent, thorough, and continuously improving their professional competence.
- Scope and Nature of Services: CPAs must follow professional standards and provide only those services for which they are competent.
- Rules: The Code of Professional Conduct contains specific rules related to various aspects of professional practice, such as independence, integrity, objectivity, general standards, and accounting principles. These rules are enforceable and provide guidance on the ethical conduct expected of CPAs.
- Interpretations: The Code includes interpretations, which help clarify the application of the rules to specific situations or provide additional guidance on how to comply with the rules.
- Ethical Rulings: The AICPA also provides ethical rulings, which are published explanations of how the rules and interpretations should be applied to specific factual circumstances.
The AICPA Code of Professional Conduct is essential for maintaining the credibility, integrity, and professionalism of CPAs. Failure to adhere to the Code may result in disciplinary actions, such as fines, suspension, or expulsion from the AICPA.
