General standards Rule 201 prohibits the acceptance of any engagement that the CPA knowingly cannot handle.

Question

Quizplus · Accepted Answer

Rule 201 of the General Standards prohibits CPAs from accepting any engagement that they knowingly cannot handle. This is a fundamental principle of ethical behavior in the accounting profession, as it ensures that CPAs only take on work that they have the requisite knowledge, skills, and resources to perform competently. Violating this rule can result in disciplinary action by professional organizations, such as the AICPA, as well as legal liability in cases where the CPA's incompetence or negligence leads to financial harm for their client.

General Standards Rule 201 Prohibits the Acceptance of Any Engagement