Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 19

In their landmark book that was published in 1966, Ethical Standards of the Accounting Profession[i], John Carey and William Doherty state that: “The [AICPA] code [of ethics] in effect is an announcement that, in return for the faith which the public reposes in [CPAs], members of the profession accept the obligation to behave in a way that will be beneficial to the public.”  Comment on the meaning of this statement as you understand it.

Step 1 of 2

AICPA

AICPA stands for the American Institute of Certified Public Accountants. It is founded in 1887. AICPA is set up in the United States and it is the national professional organization of Certified Public Accountant.

Role of AICPA

1. It set a standard of ethics for the best practice for accounting.

2. Create guidelines with the new legislation.

3. In relation to accepted accounting practice (CPA) its monitors service quality.

AICPA is designed to resolve the issue related to the audit and preparation of an audit report by the CPA. The AICPA’s provide a higher professional manner benefits to the public, employers, and clients through the resources, information, and leadership that enable them to provide valuable service.

There are more than 40,000 members in 128 countries in AICPA including government, industries, and international associates.