Eth 376 - Accounting Ethics and Professional Regulations - Code of Conduct

Code of Conduct

Accounting Ethics and Professional Regulations/ETH/376

March 9, 2015

Code of Conduct

In this short paper, I will describe the purpose of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct and discuss why it is considered to be the foundation of ethical reasoning in accounting.  Furthermore, I will also answer the questions of what are the three most important principles and why those are the most important.

AICPA

The AICPA is a voluntary association of CPAs with member numbers in 300,000’s across the globe.  Since so many CPAs are members of the AICPA, the AICPA’s code of conduct is used when discussing the ethical obligations of CPAs.  Another reason it can be considered the foundation of ethical reasoning in accounting is that the AICPA has the Professional Ethics Executive Committee.  This committee helps set the standards for each of the individual members as well as member firms.  This committee will also address major issues like discipline when a violation of the code happens.  (University of Phoenix, 2011)(Eber, 2015)

Principles & Rules

The AICPA Code of Professional Conduct is divided into two sections.  The first section, being the Principles, is stated as providing the framework for the second section, the Rules.  The Rules regulate the performance of the professional services rendered by the AICPA members.  The Principles are there to guide members and call for all CPAs to act in an honorable way in all that they do, even at the sacrifice of personal gain.  The Code of Professional Conduct consists of six basic principles; Responsibilities, The Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services.   (University of Phoenix, 2011)(Eber, 2015)

Most Important

Of the six principles, I believe the first three are the most important, Responsibilities, The Public Interest, and Integrity.  Responsibilities and Public Interest, I feel these two go hand in hand with one another.  When dealing with the public’s interest you should always or at least want to always be responsible.  (University of Phoenix, 2011)(Eber, 2015)

The Responsibilities principle states that the members need to exercise sensitive professional and moral judgments in all that a CPA does.  This principle wants the member to see the importance of moral reasoning in meeting professional obligations.  (University of Phoenix, 2011)(Eber, 2015)