AICPA Code Of Professional Conduct Analysis

1021 Words 4 Pages
For public, business, and other practices, the AICPA Code of Professional Conduct has different Rules for those practices. As for public practice, independence is a required rule but not for CPAs in business and other practices. It is important because there are always some circumstances or relationship occurring to threat the Code compliance so that the public interest will be put at risk. For CPA firms, before they sign the engagement letters with clients, they must make sure the independence of the CPAs and the firms will not be impaired. At this point, auditors can use the conceptual framework to evaluate the relationship or circumstance to decide whether provide service or not. For instance, if the Code can directly address the issues, …show more content…
It requires the CPAs to be independent both in mind and in appearance. Independence of mind means that the CPA must be independent to make judgements. Independence in appearance requires the CPA to avoid informed third party knowing relevant and confidential information when performing attestation procedures as it is possible that the third party may conclude that the CPA and the team has been compromised. However, the independence for either CPA or the CPA firm will be impaired in a certain …show more content…
It is important that the CPAs preform services in accordance with the GAAS that they must do attestation with integrity, objectivity, professional competence, due care, and confidentiality, but it’s more important for them to recognize the goal of serving public interest. Auditors must ensure that they have independent judgments for the financial reporting and avoid being compromised by third parties or their clients. Only if they concur the ethical conflicts between their self-interest and public interest can the public be beneficial from their services

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