week 5 Assignment

Running head: ACCT525 1

ACCT525 5

AICPA Code of Professional Conduct

Student’s Name

Institutional Affiliation

Introduction

The accounting professional code of conduct was introduced to provide professional guidance to its members in all industries. The code consists of the guiding principles and the professional rules. The AICPA’s Code of Conduct Principles provides a framework to enable the execution of the rules in order to govern and guide the performance of members. (can you 2 more sentences)

Section 50-Principles of Professional Conduct

It comprises Section 50-57. According to Section 50, AICPA membership is voluntary to any qualified individuals. The members are required to maintain self-discipline and recognize their professional roles and responsibilities towards different stakeholders such as clients, public, and other professionals. Section 52 requires the members to exercise professional and moral judgment in their professional duties (“AICPA,” 2013). According to Section 53, AICPA’s professional members are required to perform their duties in public interest. Also, members are required to honor their trust on public members. In addition, sections 54 states that all members should promote public confidence and perform their duties with integrity. According to section 55, members should be independent and operate freely without any conflict of interests (“AICPA,” 2013). In addition, Section 56 provides professional guidance and requires members to exercise due care when performing their duties to the public. According to “AICPA,” (2013), “Section 57 provides guidance to help members to identify the scope and nature of their services according to the principles of the AIPCA Code of Professional Conduct.” (you didn’t include section 51 can you include section 51 )

Section 90-Rules: Applicability and Definitions

It includes Section 91 and 92. According to the professional code of conduct, Section 91 provides guidance on the applicability while Section 92 offers a definition of different terms used in the professional code of conduct. Section 90 requires adherence to the code but it also gives for exemptions;

i. In case a foreign component auditor departs from an engagement team but his or her conduct is in accordance with IESBA, then he or she will is not subject to the discipline (“AICPA,” 2013).

ii. Also, if a member performs his duties outside the United States and his conducts are in line with requirements of the host country’s accounting profession, such a member will be subject to the discipline.

iii. Another exemption is offered when an organization operates outside the United States but leaves from the profession but its performance is in line with the IESBA requirements (“AICPA,” 2013).

iv. Finally, a member may be exempted from the code of conduct if when the rules indicate so. Can You describe more in details.

Section 100-Independence, Integrity, and Objectivity

This Section provides conceptual framework guidance on the independence, professional integrity, objectivity requirements. The section is made up of three sections (Section 101, 102, and 191). Section 101 provides independence standards together with different interpretations. On the other hand, Section 102 provides guidance regarding the interpretations of objectivity and integrity of the members (“AICPA,” 2013). Finally, Section 191 provides guidance on ethical requirements relating to member’s independence, objectivity, and integrity of members.

Section 200-General Standards Accounting Principles

This Section is made up of subparts 201-203 and 291. According to Section 201, members are required to be professionally competent, plan adequately, and make decisions based on the available data. Also, a member is supposed to perform professional duties with due care. Section 202 offers guidance on the compliance requirements for members. On the other hand, Section 203 provides guidance restricting members from expressing an affirmative opinion of financial reports of his clients (“AICPA,” 2013). Also, Section 203 restricts a member from stating that he is unaware of the modifications required in the financial reports to ensure they conform to the GAAP. Finally, Section 291 offers guidance on ethical standards for accounting professionals. (Can you describe more in details)

Section 300-Responsibilities to Clients

This Section offers guidance on professional’s responsibilities to their clients. For example, information to successor accountant information regarding tax irregularities in his client returns. Other responsibilities include guarding client’s information against competitors and safeguarding client’s sensitive information (“AICPA,” 2013). Section 391 provides a list of professional ethical responsibilities expected from members. Professional members are not required to use third party service providers to offer professional services to his or her clients. (you didn’t mention section 301 and 302, can you include that please)

Section-Responsibilities to Colleagues

ET Section 400 provides professional’s responsibilities to their colleagues. The details and the content this Section 400 is reserved for AICPA.

Section 500- Other Responsibilities and Practices

The Section is made up of subsections 501-503. Also, it contains 505 and 591. Generally, Section 500 states the practices and responsibilities of members. Section 501 provides a guideline on acts that shall not be performed by members of AICPA. On the other hand, Section 502 prohibits misleading or advertising to obtain clients. Also, this Section prohibits false or deceptive solicitation duties. In addition, Section 503 prohibits members from receiving referral fees and commissions (“AICPA,” 2013). However, members are allowed to receive permitted commissions only. Members are required to properly disclose the commissions received according to the professional code of conduct. Section 505 prohibits members from offering professional services under a misleading name of the firm. Finally, section 591 provides guidance on ethical responsibilities and practices expected from professional members. (you didn’t mention section 502, can you include that please)

References

AICPA. (2013). Code of Professional Conduct and Bylaws. Retrieved February 3, 2018, from AICPA : http://www.aicpa.org/RESEARCH/STANDARDS/CODEOFCONDUCT/ Pages/default.aspx.