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Code of Professional Ethics and Conduct - Research Paper Example
Finance & Accounting
Pages 3 (753 words)
Code of Professional Ethics and Conduct Name Institution’s name Introduction AICPA code of professional ethics describes a collection of statements that were issued by America Institute of Certified Public Accountants. More importantly, the code of professional conduct outlines the CPA’s ethical and professional responsibilities for the AICPA members…
This paper analyses the disciplinary actions due to violation of rule 102, 201, 202 and 501 of the AICPA code of professional ethics. Rule 102; integrity and objectivity Mr. Robert Bassman of Troy, Michigan violated the code of ethics of professional conduct of AICPA, together with Michigan Association of CPAs, when he gave consent to the entry of an order instituting public administrative proceedings. Inherently, according to rule 102, of integrity and objectivity, an AICPA member is supposed to act at all times with integrity and objectivity while providing services to a client (Crawford & Loyd, 2008). The members is not supposed to knowingly misinterpret facts by making, permitting or directing another to make false as well as misleading entries in an entity’s record. Consequently, Bassman was suspended from appearing before SEC as an accountant, as well as from the membership of the Michigan association of CPAs and AICPA for two years. In addition, he was mandated to pay a disgorgement fee amounting to $35,000 (AICPA, n.d.). Mr. Bassman gave consent for the entry of an order instituting the public administrative proceedings, which indicates that he was aware of the situation. Subsequently, instituting the public administrative proceedings may translate to detrimental effects, which could be costly. ...
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