Essay on The Code Of Professional Conduct

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The AICPA requires members to follow the Code of Professional Conduct in order for there to be guidance and rules in regards to CPAs performance of professional responsibilities. One of these rules includes independence, where the accountant should not have a financial interest in the client. More specifically, within independence, the accountant should follow Interpretation 101-5: loans from financial institution clients and related terminology, where independence is considered impaired if a covered member holds a loan from a client “owning 10 percent or more of a client.” However, there are exceptions which are grandfathered loans and other permitted loans, which show cases where these loans would not be impaired. The AICPA stands for the American Institute for Certified Public Accountants. They are a “premier professional organization for CPAs in the United States.” The AICPA provides its members with the leadership, information, and resources, which allows them to aid clients and the public in a professional matter. To be a member, one must have passed the required examinations, which further provides that they have a valid license to practice accounting, usually the CPA license. Also, one must be employed by an “AICPA-approved institution” and to follow their bylaws. The AICPA institutes policies, programs, and uniform enforcement of standards by examining disciplinary charges against AICPA members and state societies (Encyclopedia). In addition to the AICPA…

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