Full disclosure supports transparency and the accounting professional should disclose all information that investors, owners, creditors, and the government need to know to make informed decisions. A person of integrity is trusted by others because that person is true to his or her word, and is the benchmark against which a member must ultimately test all decisions. This person will not subordinate the public trust to personal gain and advantage; and will observe technical and ethical
Foundation of ethical reasoning in accounting The AICPA is considered the foundation of ethical reasoning in accounting because its principles are a guide to members for how they are expected to perform their professional responsibilities. As an organization their aim is to instill in its membership according to ET Section 51- Preamble “The principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage (AICPA.org 2006-2014). The principles are simple and direct. The principles of the AICPA are responsibilities to the public interest, integrity, objectivity and independence (independence applies to CPAs in public practice), due care, and scope and nature of services--revised May 15, 2000 (AICPA.org, 2006-2014). These principles are exemplary ideals for the accounting profession in the performance of their professional responsibilities.
The AICPA is basically a community of accounting professionals and CPAs. Individual: AICPA Code of Professional Conduct The purpose of the AICPA is to have a precedent of set ethical standards for the accounting profession and auditing standards of companies that are private, nonprofit organizations, federal, state and local government. In having support for those in the accounting profession and to improve the profession as a whole. It is responsible for aiding in setting certain technical standards for those accounting professional who goes on to get their licenses to becoming CPAs. The AICPA have several publication that helps with guiding the accounting profession and to enhance the member’s technical and professional abilities.
These principles are strictly set in place to “represent the expectations for CPAs on the part of the public in performance of professional services” (Mintz & Morris, 2011.). After reading chapter one from Ethical Reasoning: Implications for Accounting, the three most important principles are responsibilities, public interest, and integrity. Responsibilities According to Eber (2004) This principle states that members need to exercise sensitive professional and moral judgments in all their activities, are responsible for cooperating with each other to improve the art of accounting and should maintain the public's confidence and enhance the traditions of the accounting profession (The AICPA Code of Professional Conduct, Responsibilities). Responsibilities are first out of the six principals for the AICPA Code and the third most important principle. This principal is what helps guide professional members in performance and to honor public trust.
Your duty of care means that you must aim to provide high quality care to the best of your ability and say if there are any reasons why you may be unable to do so. When professionals act within a duty of care they must do what a reasonable person, with their training and background, can be expected to do. So, for example, an accountant must get their sums right and apply for the right tax exemptions for their clients. In the same way, a care provider is expected to be trustworthy, in accordance with their code of practice, and apply suitable skills when carrying out care services. Providers and care workers must always take reasonable care.
The Code of Professional Conduct of the American Institute of Certified Public Accountants (AICPA) is an organization the foundation of ethical reasoning in account. This paper will talk about the three most important purposes of the AICPA and why these are important. The AICPA was founded in 1887 and is a collection of statements that out line a Certified Public Accountant (CPA) ethical and professional responsibility. It also establishes standards for auditor independence, integrity and objectivity, responsibility to clients and colleagues and acts discreditable to the account profession. The code is revised and reissued annually in June.
This principle is about a psychologists responsibility to the communities they work in, to society as a whole, and to their colleagues. The third principle is integrity, which is about a professionals accuracy with billing, honesty to clients, and truthfulness to everyone they work with. Justice is the next principle. This principle outlines the fairness of psychology professionals. Everyone is entitled to have access to and to benefit from psychological services without biases being a factor.
Abstract For this assignment I was asked to search out 3 publicly held businesses and review their Code of Ethics. I am to explain whether or not the code is equal to what was requested by the Sarbanes Oxley Act and then explain why I chose this answer. To further the investigation of the 3 companies, I am to tell what cultural or business challenges would be best handled by the companies own personal codes and then find what could be absent in the codes which could be used to help the company, should the do business globally. Sarbanes-Oxley Code of Ethics Part 1. Congress passed the Sarbanes-Oxley Act in 2002 that states in Sec.
AICPA Code of Professional Conduct ETH/376 May 31, 2014 University of Phoenix AICPA Code of Conduct The AICPA is better known as the American Institute of Certified Public Accountants. The phrase Certified Public Accountants is better known as CPAs. The AICPA has a code of conduct which is used to determine the ethical duties or obligations of the CPAs. (Accounting @ suite 101) The foundation of ethical reasoning and the maintaining of the Code of Professional Conduct is done by the AICPA. One of the most important purposes of the code of conduct is to maintain an honest and trustworthy relationship with the public and their interests.
To ensure that we are performing to the best of our abilities we have to maintain our skill set. If someone comes up with a better way to do things CPAs should be open to the information and not just stuck in the way things have always been done (Mintz & Morris, 2011, Chapter Chapter 1). Reading the principles you can see that they talk about the others within their explanations, but in order to provide the best service to clients understanding the responsibilities, making sure our integrity is always intact, and maintaining our due diligence (care) in always presenting the best products should be the most important. Mintz, S., & Morris, R.E. (2011).