Accounting and Auditing Research and Databases: Practitioner's Desk Reference

AICPA Code of Professional Conduct

A distinguishing mark of any profession is the establishment and acceptance of a code of professional conduct. Such a code outlines a minimum level of conduct that is mandatory and enforceable on its membership. A code of ethics emphasizes the profession's responsibility to both the public and colleagues. Every CPA in the practice of public accounting has the responsibility to follow the AICPA Code of Professional Conduct and its applicability to audit, tax, and consulting services.

The AICPA's Professional Ethics Executive Committee (PEEC), in order to improve the code, has restructured the institute's ethics standards to help members and others to apply and interpret the rules more easily. The restructured code is now organized by topic, which also incorporates a conceptual framework for members in the practice of public accounting and those in business. This conceptual framework, referred to as the “threats and safeguards,” aids members in the application of the code. The restructured code has several parts, including a Preface that is applicable to all members, a section for members in the practice of public accounting, a section for members in business, and a section applicable to all members, such as those who are retired.

The restructured code, available in the AICPA's Online Professional Library, consists of principles, rules, and interpretations. The principles serve as the basic framework for the rules. The rules are mandatory and enforceable. ...