Which of the following statements best differentiates a principle and a rule as per AICPA's Code of Professional Conduct?
A) A principle is an external person who oversees the behavioral actions of those who practice a profession, while a rule is a value-based internal force for behavioral action.
B) A principle is an external person who oversees the behavioral actions of those who practice a profession, while a rule is an authoritative regulatory force for behavioral action.
C) A principle is a value-based internal force for behavioral action and a rule is an authoritative regulatory force for behavioral action.
D) A principle is regulatory force with advanced education and training and a rule is a value-based internal force for behavioral action.

Question

Quizplus · Accepted Answer

A principle is a fundamental concept or value that guides the behavior of those who practice a profession. In contrast, a rule is a specific, authoritative requirement established by a regulatory or standard-setting authority. Therefore, a principle is a value-based internal force for behavior, while a rule is an authoritative regulatory force for behavior. Choice A is incorrect because a principle is not an external person. Choice B is incorrect because a principle is not an external overseer, and not all rules come from regulatory authorities. Choice D is incorrect because it incorrectly defines a principle as a regulatory force.

Which of the Following Statements Best Differentiates a Principle and a Rule