AICPA Code Of Professional Conduct Analysis

Improved Essays
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

Related Documents

  • Improved Essays

    Independence In Auditing

    • 1290 Words
    • 6 Pages

    Independence ensures that the public is confident in the integrity of the financial statements. Without this confidence, the public could not feel confident participating in financial markets which would greatly harm the economy. Auditors must further ensure to honor the public’s trust which underlines the importance of being independent in appearance. Auditors have the responsibility to exercise professional judgements when auditing financial statements and the public must trust that their professional judgement is without bias otherwise the reports would be potentially materially misleading. 2.…

    • 1290 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    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.…

    • 1005 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    In this ethical vignette that I am reviewing, the central ethical problem or problems that are presented have to do with whether or not to release a client’s information to authorities. The counselor has to make a tough decision to release information, but she also has to take in account that the client signed an informed consent prior. The central problem is over client confidentiality versus what the authorities want from the counselor that involves a life or death situation, which isn’t relevant to the client at all. Another problem that seems to be controversial is whether we can trust this detective, whether or not he is legit and if he is just posing as an official just to seek out confidential information. This ethical dilemma proposes…

    • 1415 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    It is also important to be sure the worker makes clear to the client what information can and cannot be shared with other staff members within the agency. Human service workers will need to be sure the informed consent forms cover these limits as…

    • 1019 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Harm is an action that is “injurious or set[s] back important interest[s] of particular people, interests in which they have rights,” whereas a mere offence is something that Mill’s does not see as a defence under the harm principle (Brink 2007, ch.3.6, para. 2). The second concept beneath the harm principle is that this principle is imposed to prevent someone from trying to cause harm in a certain way. It can become difficult trying to guard individuals from harm, therefore, allowing for citizens to self-govern themselves so they can determine what is safe and harmful. From what we can understand, the harm principle regulates a relationship between individuals and the government, however Mill’s wants this theory to dig deeper and apply its foundation within the family (Brink 2007, ch.3.6).…

    • 1465 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Being A Teen Father Essay

    • 786 Words
    • 4 Pages

    You will need to be educated on your state 's laws as well as stay educated since laws can change. It can be tough being a human service professional and working with clients such as Gary. Some people can’t put their own personal beliefs and bias’s aside. That is just one reason why there are ethical standards put in place. Being biased is against one of the NOHS Ethical Standards.…

    • 786 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Privacy and information security is an important measure to protect vital information from wrong hands. Information and privacy has become a big concern for the government and private organizations which try to ensure that the citizen information or government confidential information are as secure as they can be. But how it is the information and privacy controlled? How do the government and private organization ensure that they are sharing the right information and no more than the supposed to? There are different regulations to protect the information shared and also to release the information that needs to be shared, the perfect examples are; Freedom of Information Act (FOIA), HIPPA, and Sarbanes-Oxley Act.…

    • 1087 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    When assessing as to whether there are sufficient measures of accountability for the executive, it first must be taken into consideration what a good standard of accountability is. According to Gregory and Hicks, the method of accountability should be mechanistic and not one followed simply by rules and procedures. O’Loughlin on the other hand interjects that there is a need of responsiveness by the government to local needs and demands and the members of the public are customers that enforce their sanctions through political processes. Mulgan states that responsiveness and accountability have two different meanings and should therefore not be linked; a government being more responsive does not mean they should be more accountable. What is…

    • 1500 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    The company and the worker need to know and respect existing laws pertaining to professional work. For example, Randey Samuels and the workers must obey existing local, state, province, national, and also international laws unless there is a compelling ethical basis not to do so. But, compliance must be balance with the recognition that existing laws and also the rules may be immoral or inappropriate. Violation of a law or regulation may be ethical when that law has inadequate moral basis or when it conflicts with another law judged to be more important. If Randey Samuels decides to violate a law, because it is viewed as unethical, one of the woker must fully accept responsibility for one's actions and for the…

    • 1079 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Basically it determines what data entities stores the needed information within the system. As well as the workflows and business rules that are needed to be completed to process request. Then finally the client request is send through the Data Access Service to make sure that this data is able to be accessed and provided to requestor. Once this is confirmed…

    • 1025 Words
    • 5 Pages
    Improved Essays