Which of the following statements is true of AICPA's Code of Professional Conduct?
A) Although AICPA membership is voluntary, membership mandates compliance with the Code of Professional Conduct.
B) The purpose of the Code is to induce the accountants through guidance, rules, interpretations, and rulings to join the AICPA.
C) The code helps members monitor their own behavior but it does not provide a framework for resolving disputes.
D) The Code has two sections: principles and rationales.

Question

Quizplus · Accepted Answer

The AICPA Code of Professional Conduct is mandatory for all members of the AICPA, and failure to comply can result in disciplinary actions such as suspension or revocation of membership. Option B is incorrect because the purpose of the Code is not to induce accountants to join the AICPA but to provide guidance on ethical behavior once they become members. Option C is incorrect because the Code does provide a framework for resolving disputes through the AICPA's Professional Ethics Executive Committee. Option D is incorrect because the Code has three parts: Principles, Rules, and Interpretations.

Which of the Following Statements Is True of AICPA's Code