Code of Professional Ethics

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Code of Professional Ethics and Conduct Code of Professional Ethics and Conduct The AICPA adopted a Code of Professional Ethics and Conduct made up of various rules to provide guidance to members on the performance of their professional responsibilities (Strayer, 2011). All of the rules set forth by the CPA are enforceable under the AICPA bylaws. These bylaws enforced by the Joint Ethics Enforcement Program which is sponsored by the AICPA and individual state societies for CPA’s. For the sake of this paper we will be looking at four individual case studies pertaining to rule 102 – integrity and objectivity, rule 201 – general standards, rule 202 – compliance with standards, and rule 501 – acts discreditable. Each case covers a violation of one or more of the rules and the enforcement actions taken against the individuals in violation. In 2005, David C Volpe of Stoughton, MA, acting chief financial officer and consultant of Chancellor Corp was found in violation of this rule as well as rule 501, acts discreditable. His actions pertaining to rule 102 were “directly or indirectly made or caused to be made materially false or misleading statements, or omitted to state or caused another to omit or to state material facts necessary in order to make Chancellor Corp’s financial statements not misleading to the outside auditors” (AICPA, 2005). These actions pertain to Chancellor’s financial statements filed with the SEC on forms 10-KSB and 10-QSB for the year ended December 31, 1998 and quarter ended March 31, 1999. The first case pertains to rule 102 of the code. Rule 102 states “In the performance of any professional service, a member shall maintain objectivity and integrity, shall be free from conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her

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