Code of Professional Ethics by American Institute of Certified Public Accountants
Introduction
"A code of professional ethics is a voluntary assumption of self discipline
above and beyond the requirements of the law. The Code of Ethical Conduct serves
the highly practical purpose to notify the public that the profession will
protect the public interest" (Carey, Doherty: p 3). When people need a doctor, a
lawyer or a certified public accountant, they seek someone whom they can trust
to do a good job, not for himself but for them. People assume that the hired
professional is qualified since they cannot appraise him. They must take it on
faith that he is competent. That is why professionals are distinguished from
businesses and why there is a need for ethical regulations.
The Code of Professional Ethics
The Code of Professional Ethics for public accountants was developed by the
American Institute of Public Accountant and includes four different categories.
The first, Concepts of Professional Ethics, establishes major requirements for
CPAs in different areas of their day-to-day professional activities. The main
parts of the Code are: Independence, Integrity and Objectivity in the practice
of public accounting, Competence and technical standards, Responsibilities to
clients, Responsibilities to colleagues and Other responsibilities and
Practices. Independence has always been the fundamental concept to the
accounting profession. In fact it is the most essential to the practice of all
professions. The financial reports produced by CPAs would be of little value to
the public unless CPAs maintain their independence. Independence has always been
associated with integ ...