The American Institute of Certified Public Accountants is the rule-making and standard-setting body of the CPA profession. AICPA membership is not a requirement of the CPA profession, but it does help accounting professionals stand out by proving they’re being held to a higher professional and ethical standard. Membership also helps CPAs stay up to date with the most recent changes within the industry. Show Like we said, becoming a member of the AICPA isn’t necessary, but it may be a great move for your career; members are connected to a network of over 400,000 other CPAs who help guide each other through current careers, career advancement, and career changes. If you’re a member or are considering membership, it’s good to be aware of the AICPA’a Code of Professional Conduct to ensure you’re holding yourself to the high ethical standards of the AICPA. Below, we’ll cover what you need to know about the AICPA’s Code of Professional Conduct. It’s Consistently Being Updated While the Code of Professional Conduct was last revised on December 15th, 2014, it includes new, revised, and pending interpretations and other guidance pertinent to more recent changes in the industry. The Code includes new and revised interpretations that include Information Systems Services, Hosting Services, and other guidance, while the pending interpretations also include Information System Services updates. These interpretations provide guidance for CPAs as the profession becomes more technologically dependent. CPAs should spend some time each year reviewing the updated interpretations and guidance to ensure they’re staying up to date on any relevant updates. It Consists of Six Main Principles The Principles of Professional Conduct are found in the Preface portion of the AICPA Code of Professional Conduct and are applicable to all AICPA members. Outside of the six main principles we’ll cover below, the AICPA Code of Conduct notes that these are the basic principles of professional conduct. Members should consistently be evaluating situations and going above and beyond the principles when it comes to ethical behavior.
It Covers Three Main Sections There are three parts of the AICPA Code of Professional Conduct that seek to cover all the roles a CPA may encounter in their profession. Members should consider which category they fall into and review and adhere to that category’s rules.
It Isn’t the Only Code to Consider The AICPA’a Code of Professional Conduct is meant to be a general framework, but there are several governing bodies that need to be considered when we approach the topic of ethics. The first ethical guidance members and all CPAs should look to is the ethical requirements of their state CPA society and/or state board of accountancy. After reviewing the ethical information provided by your state, the AICPA notes you should also consider the ethical regulations of the following governing bodies:
While membership in the AICPA is not required, those that are members need to ensure they’re holding themselves to the ethical standards mentioned above. You can review the AICPA Code of Professional Conduct in its entirety at the AICPA’s website. Which rule is included in the Code of professional conduct?It imposes the obligation to perform professional services to the best of a member's ability with concern for the best interest of those for whom the services are performed and consistent with the profession's responsibility to the public. Competence is derived from a synthesis of education and experience.
What are the principles of the AICPA Code of Professional Conduct?The principles are: Responsibilities Principle, The Public Interest Principle, The Integrity Principle, Objectivity and Independence Principle, Due Care Principle, and the Scope and Nature of Services Principle.
Which sections are included in the AICPA ethics codification?The Code of Professional Conduct of the American Institute of Certified Public Accountants consists of two sections--(1) the Principles and (2) the Rules. The Principles provide the framework for the Rules, which govern the performance of professional services by members.
How many parts does the AICPA Code of Professional Conduct have?There are three parts of the AICPA Code of Professional Conduct that seek to cover all the roles a CPA may encounter in their profession.
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