Question

The AICPA Code of Professional Conduct (the Code) is generally recognized as a model for the accounting profession. Other professional accounting organizations have their own Standards. Some use parts of the AICPA Code; but others are very different from the AICPA Code.

1. What is covered by the AICPA Statements on Standards for Tax Services (SSTS)? Be specific in your discussion of how SSTS is similar to the AICPA Code and how it is different. How does SSTS treat independence? How are these standards enforced?

Answer 1

Answer:

AICPA is known as American Institute of Certified Public Accountants, it is the non profit organisation of professional accountants in United States. It was founded in 1887, under the name of American Association of Public Accountants in order to ensure that accountancy gained a huge respect and it was practiced by ethical and competent professionals.

AICPA Statements on Standards for Tax Services are enforceable tax practice standards for all the members of AICPA, it has become the part of professional code of conduct. These standards are now applicable to all CPA's tax planning and tax return preparation.

The SSTSs have their origin in the Statements on Responsibilities in tax Practices which provided an advisory opinions on good tax practices.In order to safeguard from malpractices in taxes AICPA tax committee has concluded to issue the tax practice standards that become the part of AICPA's Professional Standards.

There are seven current AICPA statements, SSTS 1 through 7.The following SSTS's and any interpretation issued thereunder reflect the AICPA's standard of tax practice and delineate members responsibilities to taxpayers, the public, the government and the profession.The statements are intended to be the part of ongoing process of standards of tax practice for all the members of AICPA.