Question

1. List and describe (briefly) the AICPA 6 Ethical Principles : (25 pts)

Principle                                                                                   Description                                              

1-                                                                                                                           

2-

3-

4-

5-

6-

Answer 1

The AICPA Code of Conduct is based on six principles; (1) responsibilities (2) serve the public interest (3) integrity (4) objectivity and independence (5) due care and (6) scope and nature of services.

These principles are required practices for all certified public accountantswho are members of the AICPA. The principles are the required behavior for accountants and lay the groundwork for specific rules of accounting. “The Principles of the Code…express the profession’s recognition of its responsibilities to the public, to clients, and to colleagues. They guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The Principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage.”

The nature and purpose of the Code of Conduct is to provide guidance for accounting practitioners in the conduct of their professional affairs. These principles were designed to provide the conceptual framework for specific accounting rules that all AICPA members must follow in their course of business. Accountants have an ethical responsibility to three main groups; the public, their clients, and colleagues.