Read the overview below and complete the activities that follow. CPAs are required to abide by professional standards as outlined in the AICPA Code of Professional Conduct and related guidance. It is important for CPAs to understand the structure of the professional guidance so that they can find the information needed to determine an appropriate course of action when dilemmas arise.
CONCEPT REVIEW:
The Code of Professional Conduct is structured in two major sections called Principles and Rules. Principles outline the profession's responsibilities to the public, clients, and fellow practitioners. Rules are enforceable applications of the Principles. Additional guidance that further explains the scope and application of the Rules is included in Interpretations and Ethics Rulings.
It is important to understand the structure of the auditor's Code of Professional Conduct. Place the following descriptions into the appropriate category.
Principals Rules
Compliance with Standard
Acts Discreditable
Commissions and Referral Fees
Integrity
Responsibilities
Accounting Principles
Scope and Nature of Services
Objectivity and Independence
Independence
The public interest
Integrity and obectivity
General Standards
Advertising and Other forms of Solicitation
Due Care
The Public Interest
Form of Organization and nature
Confidential Client Information