AICPA Code of Professional Conduct

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Deirdre

The AICPA Code of Professional Conduct has three different types of members: those in public practice, those in business and those that are not either of the other two.  For both public practice and in business members the following is stated under Preparation and Presentation of Financial Statements and Records, “the member would be considered to have knowingly misrepresented facts in violation of the “Integrity and Objectivity Rule,” if the member

a. makes, or permits or directs another to make, materially false and misleading entries in an entity’s financial statements or records;

b. fails to correct an entity’s financial statements or records that are materially false and misleading when the member has the authority to record the entries; or

c. signs, or permits or directs another to sign, a document containing materially false and misleading information.” (AICPA 1.130.010.01)

In reading through some of the other information and examples within the Code of Professional Conduct, I believe these three unacceptable acts are comprehensive.  We can not logically state every instance of unethical behavior when it comes to financial statements, but they all would fall under one of the above.  To update these three basic ideas would be a waste of time when the main objective of financial statements is to report accurate information based on GAAP and FASB standards.  This objective is clear in the code’s descriptions of violations against the Integrity and Objectivity Rule.

 

References:

AICPA Code of Professional Conduct . (n.d.). Retrieved July 31, 2017, from http://www.aicpa.org/Research/

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