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

Exercise 12

Integrity is said to be the backbone of ethical behavior. How does the integrity requirement of CPAs affect the performance of professional services by: (a) a controller of a corporation and (2) the internal auditor of a company and (3) the external auditor?  Describe a situation where each professional’s integrity may be challenged.

Step 1 of 5

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

Ethics:

Ethics in the accounting profession is defined as guidelines and principles. It includes laws and standards of behavior.

Integrity:

An accountant should not work for his personal gain. He should not manipulate the accounts. He should work with a high sense of integrity and know what is right and just.