Wednesday, May 29, 2019

Code Of Professional Ethics By American Institute Of Certified Public E

Code of Professional Ethics by American be of Certified Public controls installation"A code of professional ethics is a voluntary assumption of self disciplineabove and beyond the requirements of the law. The Code of Ethical Conduct servesthe exceedingly practical purpose to notify the public that the profession willprotect the public interest" (C bey, Doherty p 3). When people need a doctor, alawyer or a certified public accountant, they seek someone whom they can trustto do a good job, not for himself but for them. People fall upon that the hiredprofessional is qualified since they cannot appraise him. They must take it onfaith that he is competent. That is why professionals are distinguished frombusinesses and why there is a need for ethical regulations.The Code of Professional EthicsThe Code of Professional Ethics for public accountants was developed by theAmerican Institute of Public Accountant and allow ins four different categories.The first, Concepts of Professio nal Ethics, establishes major requirements forCPAs in different areas of their day-to-day professional activities. The mainparts of the Code are Independence, Integrity and Objectivity in the boreof public accounting, Competence and technical standards, Responsibilities toclients, Responsibilities to colleagues and Other responsibilities andPractices. Independence has always been the fundamental concept to theaccounting profession. In fact it is the most essential to the practice of allprofessions. The financial reports produced by CPAs would be of little value tothe public unless CPAs maintain their independence. Independence has always beenassociated with integrity and objectivity. Since faults on financialstatements may be the result of either a honest mistake or a lack of integrityit is imperative to associate the notion of independence with the objectivityand integrity. As part of the requirements by the Code of ethics, CPA shouldavoid any relationships that may result in the CPAs becoming dependent on theparticular client. Such relationships include financial interests and clientmanagement. It is very important that the opinion of the CPA reflects theresults of operating decisions taken by the client and not any underlying ideaswhich may be the case if a CPA takes part in the decision making process of thecompany.Another important ... ... ofparticular cases given under Ethics Rulings.In addition to the standards described above, state CPA institutions and othergovernment establish their own ethical standards.ConclusionProfessional ethics is concerned with human demeanor and human relations. Ashuman society becomes more complicated, so do the codes of professional conduct.The purpose of the rules is to attract and increase public confidence anddiscourage doings inconsistent with the image of profession. Publicconfidence may even be more important to the public accountant than to any otherprofessional because CPAs are concerned not only about their cli ents but alsoabout those who rely on their reports. The code of ethical conduct providesmembers of the profession with the rules that were worked out on the historicalbasis to attract the confidence of the public. Therefore, the rules of ethicsare the foundation of public confidence.Works CitedJohn L. Carey and William O. Doherty. Ethical Standards of the AccountingProfession. New York American Institute of Certified Public Accountants, 1966American Institute of Certified Public Accountants. Code of Professional Ethics.New York AICPA, 1977

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