Accounting Ethics: AICPA Ethics Code
Ethical Decision Making model - ANSWER-1: recognize ethical issue
2: gather critical facts
3: identify stakeholders
4: consider alternatives
5: consider effect of stakeholders
6: consider comfort level
7: consider rules, regulations, and laws
8: make decision
9: document efforts
10: evaluate outcome
professional organizations
federal gov entities
state gov entities - ANSWER-accountants are subjects to the rules and regulations of these three entities
aicpa - ANSWER-this is a national professional org for CPAs, providing resources and information to
members and coordinate activities with state cpa societies
professional ethics division of the aicpa - ANSWER-this promulgates the aicpa code of professional
conduct and sanctions members for violations
state cpa society - ANSWER-oscpa, state-wide professional org of CPAs, provide info and resource on
national and state wide issues, may advocate for or against legislation and regulation
IFAC - ANSWER-this group encourages global adoption of high ethical standards, aicpa is a member of
this
, sec - ANSWER-empowered by congress to regulate financial reporting by publicly held companies, also
establish and enforce rules on accounting and auditing, and independence rules
pcaob - ANSWER-created by sox in 2002, overseen by sec, establish rules with respect to auditing and
other attestation engagements, quality control of audits, and independence of pubic company audits
irs - ANSWER-this is a branch of us treasury which is authorized by the IRC to issue rules and regulation
to enforce us tax law, circular 230 governs fed tax practice CPAs, enrolled agents, etc
GAO - ANSWER-issues rules with respect to government audits, often referred to as the yellow book
these include ethics and independence rules that apply to individuals and entities that carry out these
audits
DOL - ANSWER-issue rules with respect to the audit of employee benefit plans including independence
rules that apply to such auditors
insurance regulators - ANSWER-this group is regulated by states, audits of insurance entities may be
governed to some extent by state statutes and/or rulings of state insurance commissions
state board of public accountancy - ANSWER-this group issues your cpa license, frontline of oversight of
ethical behavior, cpas must follow the rules and standards of the state they are licensed in
follow the most restrictive requirements - ANSWER-if youre auditing a publicly traded entity, you may be
subject to independence rules of multiple entities: aicpa, sec, pcaob. if so, whose rules do you follow?
6 pillars of the aicpa code - ANSWER-1) responsibilities
2) public interest
3) integrity
4) objectivity and independence
5) due care
6) scope and nature of services
Ethical Decision Making model - ANSWER-1: recognize ethical issue
2: gather critical facts
3: identify stakeholders
4: consider alternatives
5: consider effect of stakeholders
6: consider comfort level
7: consider rules, regulations, and laws
8: make decision
9: document efforts
10: evaluate outcome
professional organizations
federal gov entities
state gov entities - ANSWER-accountants are subjects to the rules and regulations of these three entities
aicpa - ANSWER-this is a national professional org for CPAs, providing resources and information to
members and coordinate activities with state cpa societies
professional ethics division of the aicpa - ANSWER-this promulgates the aicpa code of professional
conduct and sanctions members for violations
state cpa society - ANSWER-oscpa, state-wide professional org of CPAs, provide info and resource on
national and state wide issues, may advocate for or against legislation and regulation
IFAC - ANSWER-this group encourages global adoption of high ethical standards, aicpa is a member of
this
, sec - ANSWER-empowered by congress to regulate financial reporting by publicly held companies, also
establish and enforce rules on accounting and auditing, and independence rules
pcaob - ANSWER-created by sox in 2002, overseen by sec, establish rules with respect to auditing and
other attestation engagements, quality control of audits, and independence of pubic company audits
irs - ANSWER-this is a branch of us treasury which is authorized by the IRC to issue rules and regulation
to enforce us tax law, circular 230 governs fed tax practice CPAs, enrolled agents, etc
GAO - ANSWER-issues rules with respect to government audits, often referred to as the yellow book
these include ethics and independence rules that apply to individuals and entities that carry out these
audits
DOL - ANSWER-issue rules with respect to the audit of employee benefit plans including independence
rules that apply to such auditors
insurance regulators - ANSWER-this group is regulated by states, audits of insurance entities may be
governed to some extent by state statutes and/or rulings of state insurance commissions
state board of public accountancy - ANSWER-this group issues your cpa license, frontline of oversight of
ethical behavior, cpas must follow the rules and standards of the state they are licensed in
follow the most restrictive requirements - ANSWER-if youre auditing a publicly traded entity, you may be
subject to independence rules of multiple entities: aicpa, sec, pcaob. if so, whose rules do you follow?
6 pillars of the aicpa code - ANSWER-1) responsibilities
2) public interest
3) integrity
4) objectivity and independence
5) due care
6) scope and nature of services
