Introduction and Preference

Question 1

Code of Professional Conduct Updates

Answer 1

1) Electronic
2) Easily Updated
3) Searchable- Usually every month

Question 2

Three major parts to the of the Code of Professional Code:

Answer 2

Preface (part 0)- Three major parts

1) Members in Public Practice (MIPPS)- attest work
2) Members in Business (MIBS)
3) Other members (OMs)

Question 3

The principles and rules in the professional code are supplemented by:

Answer 3

Standards that come out from promulgated by bodies such as:

1) State CPA societies
2) SEC
3) PCAOB
4) GOA
4) DOL

Question 4

What are the six principles of professional conduct?

Answer 4

1) Responsibilities Principle- Members should exercise SENSITIVE professional and moral judgements. Members should cooperate to: improve the art of accounting, maintain the public’s confidence, and carry out the professions special responsibilities for self-governance
2) Public interest principle- obligated to act in a way that will serve the public interest, honor the public trust, and demonstrate a commitment to professionalism. A distinguishing mark of a profession is acceptance of its responsibility to the public.
3) Integrity Principle- Maintain and broaden public confidence, members should perform all professional responsibilities with the HIGHEST SENSE OF INTEGRITY. WHAT IS RIGHT AND JUST.
4) Objectivity and Independence principle: A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be independent in fact and appearance.
5) Due care principle: Observe the profession’s technical and ethical standard, strive to improve competence and quality of service. Perfection is not required, but research and consult with experts. Due care entails planning engagements and supervision of professional activities
6) Scope and Nature of Services Principle: Member in public practice should observe the Principle of the Coe of Conduct. members should: Practice in firms with good internal quality and control procedures. Use judgment to determine whether the scope and nature of service provided to an attest client would create conflict

Question 5

Objectivity is a state of mind that requires:

Answer 5

1) Impartiality

2) Intellectual honesty

Question 6

Independence only applies to:

Answer 6

MIPPS, but all members performing all services must act with objectivity and integrity

Question 7

What is the code of professional conduct?

Answer 7

Collection of codified statements issued by the AICPA that outline CPA ethical and professional responsibilities