CPA Professional Ethics

Get Started. It's Free
or sign up with your email address
CPA Professional Ethics by Mind Map: CPA Professional Ethics

1. AICPA - Code of Professional Conduct

1.1. Designed to provide a framework for expanding professional services and responding to changes in the profession

1.2. Two sections

1.2.1. Principles Responsibilities The Public Interest Integrity Objectivity and Independence Due Care Scope and Nature of Services

1.2.2. Rules

1.3. Additional guidance

1.3.1. Interpretations

1.3.2. Ethics Rulings

1.4. Independence

1.4.1. Independence of mind (actual independence) Independence of appearance Both are required

1.4.2. Threats to independence. CPA financial and other personal matters Financial Self-Interest of CPA Adverse Interest Undue Influence- Interests of relatives and friends Familiarity CPA Performance of nonattest services Self-Review Advocacy of client Management Participation

1.4.3. Approaches to evaluate threats to independence. Whether the Code directly addresses the threat If the Code does not directly address the threat, the auditor considers whether adequate safeguards exist to eliminate the threat to independence Chart

2. Ethical Dilemmas

2.1. AICPA Code of Professional Conduct

2.1.1. a mental conflict between differing moral requirements, in which to obey one requirement will result in disobeying another

2.2. Example

3. Steps in Resolving an Ethical Dilemma

3.1. Identify the problem.

3.2. Identify possible courses of action.

3.3. Identify any constraints relating to the decision.

3.4. Analyze the likely effects of the possible courses of action.

3.5. Select the best course of action.

3.6. Example

4. Need for Professional Ethics

4.1. Responsibility to serve the public

4.2. Complex body of knowledge

4.3. Standards of Admission to the Profession

4.4. Need for public confidence