The Complete CPA Reference

CHAPTER 17

Code of Professional Conduct

The AICPA Code of Professional Conduct is applicable to members of the American Institute of Certified Public Accountants. A practicing member must also comply with ethical provisions promulgated by applicable state societies and licensing jurisdictions. Most likely, the principles and rules contained in the various codes of conduct will be similar or identical. However, CPAs should ensure that the ethical provisions of their licensing jurisdiction take precedence.

The principles contained in the AICPA Code of Professional Conduct are aspirational in nature and provide basic guidance on general ethical and professional conduct.

What principles are contained in the AICPA Code of Professional Conduct?

These principles are designed to express a member's responsibilities to the public, the member's clients, and other members:

• Exercise sensitive professional and moral judgments.
• Serve the best interest of the profession.
• Perform all services with integrity.
• Maintain objectivity and, where applicable, independence in fact and appearance.
• Exercise due professional care; that is, perform services with diligence and competency.

How do the rules contained in the Code differ from the principles?

The rules contained in the Code specify the minimum level of conduct expected of members. Accordingly, they are rather specific, and members must be able to justify any departures from the rules.

Rule 101—Independence

What is the general requirement of Rule ...