Code of Professional Ethics & Conduct (4)

Finance & Accounting
Pages 4 (1004 words)
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Code of Professional Ethics and Conduct Name Institution Code of Professional Ethics and Conduct The International Ethics Standards Board for Accountants (IESBA) established the Code of Professional Ethics and Conduct for Accountants. The code executed by the American Institute of CPAs consists of two sections namely the Principles and Rules (Duska, Duska & Ragatz, 2011).


Therefore, it institutes ethical requirements for the CPAs who are expected to comply with all parts of the code. However, a breach in one or several of the code requirements leads to disciplinary action administered by the relevant bodies (Crawford & Loyd, 2008). Rule 102: Integrity and Objectivity Paul T. Fink of the Eagan, Minnesota was suspected of a breach in Rule 102, the integrity, and objectivity code. The case entailed the suspicion of a breach in conduct with respect to performance of professional services as controller and chief financial officer of a publicly held entity. According to the code, a CPA “knowing misrepresentations in the preparations of financial statements or records, or permits or directs another to sign, a document holding significantly false and deceptive information” (AICPA, 2012). Mr. Fink was guilty of participating in backdating several shipping documents meant to correct on expiring letters of credit whose terms had been defaulted. There were other discrepancies detected in the bill of lading in the year 1996 that did not tally with the inland bill of lading signed the same year. He also signed forms 10-QSB in the second and third quarter of 1996 in full knowledge of the inability of the firm regarding the fulfillment of the contract terms of sale. ...
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