Aicpa Code of Professional Conduct

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AICPA Code of Professional Conduct Trudy Linden-Craft ETH376 June 25, 2012 Juan C. Vargas AICPA Code of Professional Conduct In business, companies adopt moral values that work to guide ethical decisions to gain trust from and build integrity with its consumers. Accounting practices are an important part of a companies’ success and can lead to civil and criminal problems if a company fails to report accurate information on its financial statements. The various developments of codes of conduct over the years in the accounting profession have assisted companies’ with making ethical judgments in terms of its finances. Without the enforcement of the codes of conduct, many companies could intentionally record journal entries. Hiring CPAs allows companies to report the most accurate information to the public, board members, and potential investors. CPAs that have moral values can “withstand client and competitive pressures that might otherwise lead to the subordination of judgment” (Mintz & Morris, 2011, p. 10). The AICPA Code of Professional Conduct is a voluntary association that sets virtues-based principles for CPAs to adhere to. The AICPA consist of six principles: Responsibility, The Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. Each of the principles created allow a CPA to meet professional responsibility to the client and the public. Responsibility, considered the umbrella declaration, is one of the principles that permit CPAs to use insightful professional and moral judgment regarding accounting behaviors. The Public Interest principle works to protect various groups such as “clients, credit grantors, governments, employers, investors, the business, and financial community” because each one relies on the CPA to remain objective when sustaining commerce functionality. (Mintz & Morris, 2011)

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