Question

A- List and describe (briefly) the AICPA 6 Ethical Principles : (25 pts)

Principle Description

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Answer 1

Following are the 6 ethical principles of AICPA:-

1. Responsibilities - Accountants have a responsibility to use professional and moral judgement in all their activities, so that the users relying on their work should be properly equipped

2. Serve the Public Interest - Accountants must act in a way that serves the public interest, which should help them to make an informed and timely decision

3. Integrity - Accountants must perform all work with a high sense of integrity which is an important character trait in this profession. It is a way of determining what is right and just.

4. Objectivity and Independence - Accountants have to remain objective and cannot get close to a client. They must also remain independent of their clients with no conflicts of interest. Any kind of Interest with the client will lead to mistatement of information.

5. Due Care - Accountants should perform all their duties and assignments with utmost and due care, so as to yield correct and accurate information and report the same to users.

6. Scope and nature of services - Accountants should be fully informed about the scope of their services and act strictly keeping that in mind.