AICPA Code Of Conduct Analysis

Good Essays
Model of Trust and the AICPA Professional Code of Conduct
According to Xie and Peng (2009), ability, benevolence and integrity are the core elements that help to build interpersonal trust within organizations. These same core elements are also essential within the accounting profession and are the cornerstone of the American Institute of Certified Public Accountants’ (AICPA) Professional Code of Conduct (the Code). The Code is the primary source of guidance for accountants. The Code is designed to serve multiple purposes which include conveys the message that accounting professionals have a responsibility to protect the public interest, confirms legitimacy upon the accounting profession, and restricts the profession to only those who are
…show more content…
al, 2011, p. 100). Exercising due care requires accounting professionals to be competent, which was discussed earlier, and to be diligent. The Code describes diligence as performing services in a prompt, careful, and thorough manner which includes adequately planning and supervising professional services (AICPA, 2014). “By maintaining due care, the accounting profession exemplifies a necessary quality for maintaining the public’s trust” (Brown et. al, 2007, p. …show more content…
According to the AICPA (2014), integrity “is the quality from which the public trust derives” (p. 5). The integrity principle was developed to provide a frame of reference for the type of character traits accounting professionals are to possess. The Code specifically states, “To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity” (AICPA, 2014, p. 5). The Code requires professionals to act with honesty and to be open and straightforward with its clients and the public. Acting with integrity also means that accounting professionals are performing their duties with the public trust and interests in mind and not for their own personal gain. The principle also provides that to act with integrity is to act with objectivity, independence, and due care (AICPA, 2014). “Integrity is the fundamental character trait…that...requires accountability…Having integrity means acting out of moral principle and doing what is right, even if there are negative consequences” (Metzger, 2011, p.

Related Documents

  • Decent Essays

    It is paramount that the public trust be maintained thought ethically sincere actions. There needs to be a system in place that drives a person to unbiased decisions, and actions that create a continuity of integrity for the institution and the individual. A person in public service will have to make multiple decisions or judgements under tensions and competing needs. The components of democracy and professionalism will help an individual maintain their authentic and sincere sense of being whole and intact during times of stress and ambiguity. Integrity of office or department is essential to maintaining the public…

    • 956 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    M1 Unit 4

    • 703 Words
    • 3 Pages

    Unit 4 Question 2: What is an ethics code? What methods do firms use to monitor employees and ensure their compliance with ethics codes? An ethics code is a set of doctrines and rules that govern the conduct of employees in business and interpersonal dealings and are designed to help professionals conduct business with scrupulousness and honesty (Cressy & Moore, 1983). Ethics codes provide the foundation and standards for which employees should abide by in order to ensure just and appropriate conduct while dealing with internal and external stakeholders. Organizations use communication, awareness promotion, preparation and instruction, ethics declarations, and pledges to inform and maintain ethics benchmarks for personnel.…

    • 703 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Where SOX created standard checks and balances with strong auditing/accounting procedures as well as made penalties for fraudulent activates the SEC required disclosure obligations. The SEC created an integrated disclosure system that made it mandatory for most corporations to disclose certain information. These measures are appropriate as both complimented each other as SOX required the data to be accurate and the SEC required the information to be reported in a uniform manner to the public and…

    • 860 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Through these, the rules, norms, agreements, and operation procedures are determined and developed. These two fundamental standards are entitled as generally accepted accounting principles better known as “GAAP”, and generally accepted auditing standards best known as “GAAS”. By following both principles and working within the legal statues, accountants would attain most favorable results. GAAP, which is a model of a collection of principles, procedures, and standards, is generally utilized by accountants as a manual to gather the financial statements and accounting data. On the other hand, the second accountant principle, GAAS, is more concentrated in guiding auditors to ensure that the reports will have consistency and accuracy.…

    • 1025 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Ethical behavior is a necessary requirement for professionals for purposes of maintaining public confidence on their profession and the services they offer. Certified Public Accountants have similar ethical requirements to those found in other professions. There is a need for all professionals to be responsible, competent and provide services with great professional care. Since certified public accountants have a responsibility to users of financial statements, it is necessary for auditors to be independent both in appearance and fact. An auditor should be capable of upholding an impartial attitude throughout the auditing process and gain the faith and confidence of others on his or her independence.…

    • 769 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    agreed with Trevino 1(986) and Prawitt (2009) that numerous factors influence ethical decisions of accountants. Among well-known are the corporate culture and style of the corporate governance (p. 353). The internal audit function is the element and tool of the corporate governance. The Committee of the Sponsoring Organizations of the Treadway Commission (COSO) and Institute of Internal Auditors (IIA) provide a detailed guidance on the implementation of internal control. The effective internal control function and the ethicalness of accounting processes generate ethical financial decisions and reliable financial reporting (pp.…

    • 1441 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    FASB has helped to protect the stakeholder’s interest by creating the standards for the financial reporting. In the article on the importance of GAAP, Sabah Karimi writes, “most companies in the United States adhere to Generally Accepted Accounting Principles to maintain consitancy in reporting of financial information and reduce the risk of fraud and error. The principles have been derived from traditional accounting systems and can be adapted to an organization’s management style and industry. If GAAP didn’t not exist, companies would not be able to provide accurate and consistent financial information to investors, creditors ad stakeholders of a company” (Karimi,…

    • 1619 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    ENDORSEMENT JLT places high value on corporate governance and adhering to industry best practice. In order for JLT to live up to its “Client First”value, it is imperative that all employees behave in an ethical manner and continue to comply with the fit and proper standards. JLT’s Board of Directors take responsibility for and are ultimately accountable for compliance. The compliance department has been tasked by the Board of Directors to implement the necessary measures to ensure JLT’s compliance. This includes ensuring that all employees behave ethically and with integrity as well as comply with the regulatory requirements and adhere to the various codes of conduct and best practice standards.…

    • 1567 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Argumentative Essay Law. A system created to reflect and protect the interests of the people it serves. Without it, society cannot function. Naturally those who swear under oath to uphold the principles and ideals of the legal system must subscribe to a model which ensures that they do so. This model is the “fit and proper person” and it exists to maintain a standard of integrity and justice within the legal system.…

    • 999 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Code Of Conduct

    • 1370 Words
    • 6 Pages

    Here are a few key components of a good code of ethics: Values: this is the core values of the business and what the business believes in such as; respect, honesty and fairness (Chron, 2017). Principles: principles are used to support the businesses values. These principles include customer satisfaction, profitability and CSR. Management Support: Managers must enforce the code and encourage employees to report any violations or express any issues they may have. Personal Responsibility: employees such acknowledge and obey the code and report any violations to the code.…

    • 1370 Words
    • 6 Pages
    Decent Essays