4 parts – correct answer \u2705Ethical principles
Rules of conduct
Interpretations
Ethical rulings
Ethical principles – correct answer \u2705Ideal standards of ethical conduct stated in
philosophical terms:
Responsibilities
The public interest
Integrity
Objectivity and independence
Due care
Scope and nature of services
Though not enforceable, the burden of proof on CPA for noncompliance
rules of conduct (100-500) – correct answer \u2705Minimum standards of ethical
conduct stated as specific rules
These are enforceable
Other organizations’ rules of conduct can be less or more restrictive than
AICPA’s:
SEC
TSBPA
For frequent, recurrent questions about a specific rule of conduct
Though not enforceable, a CPA must justify departure
Prepared by AICPA Division of Professional Ethics
ethical rulings – correct answer \u2705Explanations to specific important questions
about rules of conduct
Based on questions submitted to AICPA by practitioners
Not enforceable, but a CPA must justify departure
What Should You Do When AICPA Rules of Conduct Differ from SEC, TSBPA? –
correct answer \u2705Follow whichever is more restrictive
If you’re not sure about an ethics issue, call the TSBPA
AICPA Also Recently Adopted a “Covered Person” Independence Perspective –
correct answer \u2705Previous AICPA rules took a “firm wide” Independence
perspective
Intended to modernize rules for auditor independence regarding:
Investments in audit clients
Employment relationships
Scope of services provided to SEC clients
Old rules were out of date and unnecessarily restrictive, given increasing
numbers of dual income families
Firm wide perspective:
Partners could not own any stock in any client company
Managers and below could not own stock of the client if they were in the office
doing the audit for the client
For example: Joe Abston, manager in Honolulu office, transferred to Dallas office
and had to sell Dr Pepper
covered persons – correct answer \u2705The audit engagement team members<\/p>\n","protected":false},"excerpt":{"rendered":"
4 parts – correct answer \u2705Ethical principlesRules of conductInterpretationsEthical rulingsEthical principles – correct answer \u2705Ideal standards of ethical conduct stated inphilosophical terms:ResponsibilitiesThe public interestIntegrityObjectivity and independenceDue careScope and nature of servicesThough not enforceable, the burden of proof on CPA for noncompliancerules of conduct (100-500) – correct answer \u2705Minimum standards of ethicalconduct stated as specific rulesThese […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-119800","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/119800","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=119800"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/119800\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=119800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=119800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=119800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}