Professional Ethics (AICPA)
The AICPA Code of Professional Conduct establishes ethical standards for CPAs, including principles of integrity, objectivity, due care, and independence.
Explanation
The Code consists of principles (aspirational) and rules (enforceable). Key rules include independence (required for attest engagements), integrity and objectivity, general standards (competence, due care, planning, sufficient data), and confidentiality. CPAs must not disclose confidential client information without consent, except in response to a valid subpoena, peer review, or AICPA ethics investigation. Contingent fees and commissions are prohibited for attest clients but allowed for non-attest clients with disclosure.
Key Points
- •Independence required for attest engagements; not required for tax or consulting
- •Confidential information exceptions: subpoena, peer review, ethics investigation
- •Contingent fees prohibited for attest clients
Exam Tip
A CPA may disclose confidential information without client consent in response to a validly issued subpoena — but should notify the client when possible.
Frequently Asked Questions
Related Topics
Circular 230
Circular 230 contains the regulations governing practice before the IRS, including rules of conduct for attorneys, CPAs, enrolled agents, and other authorized practitioners.
Auditor Independence
Auditor independence requires that the auditor be free from financial interests, relationships, or influences that could compromise objectivity, encompassing both independence in fact and in appearance.
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