Exam (elaborations)
AICPA CODE OF CONDUCT (Business Ethics Midterm) – Questions And Answers
AICPA CODE OF CONDUCT (Business Ethics Midterm) – Questions And Answers
[Show more]
Content preview
AICPA CODE OF CONDUCT (Business Ethics Midterm) –Questions And Answers
The AICPA Guide to Independence Correct Ans - -The Code of
Professional Conduct of the American Institute of Certified Public
Accountants
Overview:
-Adopted by the membership to provide guidance and rules to all members
(public, industry, government and education) in the performance of their
professional responsibilities
Compliance depends on:
-Primarily on members' understanding and voluntary actions
-Secondarily on reinforcement by peers and public opinion
-Ultimately on disciplinary proceedings against members who fail to
comply with the Rules
Council of AICPA:
-Authorized to designate bodies to make known/publishtechnical
standards under the Rules, and the bylaws require adherence to those
Rules and standards
Two Sections:
-Principles: provide the framework for the Rules
Rules
-Govern the performance of professional services by members
Other Guidance Correct Ans - Interpretations of Rules of Conduct:
-Interpretations which have been adopted to provide guidelines as to the
scope and application of the Rules
-However, they are not intended to limit such scope or application
Ethics Rulings:
-Formal rulings that summarize the application of Rules of Conduct and
Interpretations to a particular set of factual circumstances
-A member who departs from guidelines/rulings must provide justification
,What constitutes notice to members?
-Publication in The Journal of Accountancy
-Effective date is the last day of the month of the published pronouncement
in The Journal of Accountancy
-Time needed to comply with the pronouncement will be taken into
account
Members should also consult:
-Ethical standards of their state CPA society
-SEC
-Other governmental agencies
AICPA Mission Statement Correct Ans - -Powering the success of
global business, CPAs, CGMAs and specialty credentials by providing the
most relevant knowledge, resources and advocacy, and protecting the
evolving public interest.
ACTIVITIES:
-Advocacy - Protecting and promoting the profession's interests as the
national representative of CPAs before government, regulatory bodies and
other organizations
-Certification and Licensing - Seeking the highest possible level of uniform
certification and licensing standards and promoting and protecting the CPA
designation
-Communications - Promoting public awareness of and confidence in the
integrity, objectivity, competence and professionalism of CPAs and
incorporating the needs and views of CPAs into communications programs
-Recruitment and Education - Encouraging highly qualified individuals to
become CPAs and supporting the development of outstanding academic
programs
-Standards and Performance - Establishing professional standards;
assisting members in continually improving their professional conduct,
performance and expertise; and monitoring such performance to ensure
adherence to current standards and requirements
The Code Correct Ans - -Principles- framework for rules (Section
50)
-Bylaws & Definitions (Section 90)
, -Rules- standards (Sections 100-500)
-The AICPA Code of Professional Conduct consists of 2 major sections and
one subsection.
-The two major sections are the Principles and the Rules.
-The Principles provide the framework for the Rules and are listed in
section 50 of the code
-The rules are basically the specific standards established by the AICPA in
response to the Principles, which are detailed in sections 100-500.
-In Section 90 we have the Bylaws, which require adherence to the rules
and definitions of terms appearing in the code.
Six Principles of the Code of Conduct Correct Ans - -
Responsibilities
-Serve the Public Interest
-Integrity
-Objectivity & Independence
-Due Care
-Scope & Nature of Services
Rules Correct Ans - -Specific
-Applicable to members of AICPA & people under members control
-Violators are subject to disciplinary action by AICPA
Followed by:
-Interpretations
-Ethical Rulings
Five Sections of Rules of the Code of Conduct Correct Ans - -
Independence, Integrity, & Objectivity
-General Standards/ Accounting Principles
-Responsibility to Clients
-Responsibilities to Colleagues
-Other Responsibilities & Practices
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$31.39. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now