Question

" Common Violations of the AICPA Professional Conduct Principles "  

• Read the Code of Professional Conduct from the American Institute of Certified Public Accountants (AICPA) website. Review the Code's key requirements
• From the reading, determine at least two (2) AICPA professional conduct principles most likely to be violated. Provide your supporting rationale

Answer 1

Review the Code's key requirements- AICPA members are bound by the AICPA code of professional conduct. Rule 201 requires that members provide professional services with competency . They have to adhere to the following principles of professional conduct :

1. Responsibility – Members should exercise sensitive professional and all judgemental in all their activities
2. The Public Interest – Members should accept the obligation to act in a way that will serve public Interest, honor the public trust
3. Integrity – Member has to perform all professional responsibility with the Integrity
4. Due care and Independence – member should maintain professional’s technical and ethical standards , improve competency

Ethics ( code of Conduct) – Ethic in accounting are governed by the American Institute of CPA code of professional conduct . The AICPA periodically review its standard and provide updates for accounting professional .

Some common violation of CPA ethics relates to :

1. Conflict of Interest
2. Safeguarding confidential information
3. Maintain Audit Integrity

Under Conflict of Interest system – the accountant should provide full written disclosure of any conflicts or perceived conflicts of Interest to all relevant stakeholders according to rule 102-2 conflict of Interest

The accountant are privacy to certain confidential information, they should safeguard . They should maintain standard and not to use information for personal use .

The accountant should not share important information with friend + family , who can gain financial benefits from the client Information .

Audit Integrity maintain – This area also where the accountant fall short ethically.

Transparency is also key to avoiding violating this ethical rule.