Aicpa Code of Professional Conduct
AICPA Code of Professional Conduct
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The American Institute of Certified Public Accountants (AICPA) code of professional conduct has more than 350,000 certified public accountants belonging to the association. Since the majority of them belong to the association, the AICPA code of professional conduct is often used to discuss the ethical obligations in accounting. “There are six principles that make up the AICPA code, which include: responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of services” (Mintz & Morris, Chapter 1, 2011).
These codes form the foundation for enforceable rules. They guide members in their professional responsibilities, and call for a commitment to honor public trust, even at the sacrifice of personal benefits. This is the hardest for most people to follow. Human nature has always said to survive at all costs. Putting the public ahead of oneself is against basic human nature, but it is something all accountants should strive towards. Although the code is not law, it is upheld by accountants worldwide as a set of guidelines in dealing with ethical situations. The three most important purposes of the AICPA code of professional conduct are public interest, integrity, and due care. Public interest is the most difficult to uphold many times because it could mean sacrificing ones job, or future promotions within the company. However, without the public interest at heart, too many CPA’s would be doing unethical work only to get ahead in the company, or make more money for the company or themselves. Integrity is almost a given in relation to the job of accounting. Integrity requires accountants to be candid and forthright with client’s financial information. They should use integrity to avoid personal or monetary gain when dealing with confidential information. Without integrity, accountants would not be as highly valued as they
Name
Course
Date
Instructor’s Name
The American Institute of Certified Public Accountants (AICPA) code of professional conduct has more than 350,000 certified public accountants belonging to the association. Since the majority of them belong to the association, the AICPA code of professional conduct is often used to discuss the ethical obligations in accounting. “There are six principles that make up the AICPA code, which include: responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of services” (Mintz & Morris, Chapter 1, 2011).
These codes form the foundation for enforceable rules. They guide members in their professional responsibilities, and call for a commitment to honor public trust, even at the sacrifice of personal benefits. This is the hardest for most people to follow. Human nature has always said to survive at all costs. Putting the public ahead of oneself is against basic human nature, but it is something all accountants should strive towards. Although the code is not law, it is upheld by accountants worldwide as a set of guidelines in dealing with ethical situations. The three most important purposes of the AICPA code of professional conduct are public interest, integrity, and due care. Public interest is the most difficult to uphold many times because it could mean sacrificing ones job, or future promotions within the company. However, without the public interest at heart, too many CPA’s would be doing unethical work only to get ahead in the company, or make more money for the company or themselves. Integrity is almost a given in relation to the job of accounting. Integrity requires accountants to be candid and forthright with client’s financial information. They should use integrity to avoid personal or monetary gain when dealing with confidential information. Without integrity, accountants would not be as highly valued as they
Bibliography: Small Business - Chron.com (2009). Ethics in the Accounting Profession. [online] Retrieved from: http://smallbusiness.chron.com/ethics-accounting-profession-3738.html [Accessed: 20 Aug 2013]. Mintz, S. M., & Morris, R. E. (2011). Ethical Obligations and Decision Making in Accounting, Text and Cases (2nd ed.). Retrieved from The University of Phoenix eBook Collection database.