AICPA Code of Professional Conduct Certified public accountants (CPAs) perform a role that is essential to society. Because of the importance of that role, CPAs have responsibilities to anyone who employs their professional services. CPAs also have a responsibility to assist one another in enhancing the accounting profession, maintaining the public's confidence, and consistently fulfilling the profession's exclusive responsibilities. The voluntary association of CPAs, better known as the AICPA, has proposed a code of conduct that CPAs have chosen to adhere to. Now it is time to discuss the purpose for AICPA’s code, why it is considered the foundation of ethical reasoning, and its most important purposes.
Other attestation standards include specific guidance on other attestation services, again to ensure each CPA practices applicable accounting procedures. The final standard that leads as most important is the Code of Professional Conduct. The Code of Conduct dictates ethical conduct and asserts that all practicing CPAs will act ethically and follow all three former standards and rules. A Code of Conduct is necessary for detouring fraud and ensuring the utmost professional
Reporting Practices and Ethics Paper Sharon Tucker HCS/405 May 13, 2013 Elizabeth Caissie Abstract The implementation of financial reporting and ethical standards are crucial for the growth and progression of an organization. Reporting fairly and accurate data will help control measurements that may address theft and/or fraud within the structure. Ethical standards are vital for the development in an organization’s set rules and policies in having quality in the services provided including integrity, values, and delivering effective outcomes in honesty. Generally accepted accounting principles (GAAP) are set guidelines which indicate rules, regulations, and procedures that are implemented for the maintenance and/or monitoring records. An organization that provides a financial statement to the public, investors or government funding entities must follow the set standards developed by Financial Accounting standards Board (FASB).
At the same time the CPA must also maintain their obligation to the public as evidenced by their independence, integrity, and objectivity. A fundamental responsibility of the CPA is their concern for the confidentiality of client information. Responsibilities to colleagues: CPA and AICPA members should cooperate with each other to improve the art of accounting in an effort to gain public confidence and carry out the profession’s responsibility of
310.2 - ETHICS I. Competency 310.2.3: Ethics Programs A. Standards & Procedures The code of ethics can only be defined upon the establishment of a company mission/ vision statement, at which point policies and procedures can then be aligned with this vision. When a clear, consistent direction is defined, it is much easier to provide proper ethics training for current and future employees, as well as ensure that both employees and clients alike are treated fairly/ equally. An ethics and corporate governance officer at the executive level shall be specifically designated to undertake the task of designing, executing, and monitoring the implementation of such an ethics code. This code shall cover all aspects of corporate behavior, from discrimination, sexual harassment, conflict of interest, et cetera.
According to the text, fair value provides the most relevant and reliable information for investors about these assets and liabilities. (b)What stakeholders might benefit from the use of International Accounting Standards? The stakeholders
The operational audit studies the specific parts of an organization with the purpose of measuring its performance. Performances are measured in terms of effectiveness and efficiency such as auditing shipping and receiving or the sales departments. The benefit of these types of audits can positively affect the profitability of the organization. The financial audits, which we are doing, consist of auditing financial statements. The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP).
What does Carmichael see as the underlying mission of the PCAOB? Mr. Carmichael believes that the main directive of PCAOB is to ultimately restore the confidence of the public and investors in the “independent auditors of public companies” accomplished in accordance with the Sarbanes-Oxley ACT Of 2002. This Act empowers the PCAOB to register public accounting firms, perform inspection audits on these firms, investigating, disciplining and imposing rectifying sanctions and by overseeing the standards that these firms need to meet. The act also allows the PCAOB to perform other activities that will further its mission to protect the investors and look out for the public’s interest. 3.
Internal auditors guarantee that the internal controls are sufficient and calculate the company’s financial and information systems for accurateness. A series of audits such as financial statements, fraud, compliance, and operational can be made with the hiring of an internal auditor. The most beneficial audit for Whitfields Company would be an operational audit. Operational Audits can be done if upper-level management thinks that there is a need for operational improvements. It is a review of management and how operating procedures work.
The principle of objectivity is the obligation to be honest, impartial, and free from relationships that may impose conflicts of interest. Accounting professionals serve various interests in different capacities and regardless of service the integrity of one’s work should be protected in avoidance of jeopardizing one’s judgment. The member must also periodically assess client relationships and the responsibility of the public. Avoiding conflicts of interest while maintaining integrity, objectivity, and rendering professional services is a sure way of performing in the best interest of the