Question

Obtain a copy of the AICPA Code of Professional Conduct from the AICPA website. According to the Code of Professional Conduct, how is the public interest" defined? (Be sure to include a reference to the location in the Code where you found your answer.) Based on the Code of Professional Conduct and the IFAC's Policy Position, who is the "public"? Of those included in the public, to whom do accountants owe their primary duty? Do you believe this definition is adequate? What do you believe is missing from the definition that could improve its clarity? Using the AICPA Code of Professional Conduct, is a CPA allowed to disclose confidential client information? In what scenarios can the confidential information be disclosed? Does it matter if the confidential information is disclosed to protect the public good versus to protect the firm from litigation? According to Section 700 of the Bylaws, what are the consequences of violating Rule 301? (Be sure to include a reference to the location in the Code where you found your answer.) Obtain a copy of the AICPA Code of Professional Conduct from the AICPA website. According to the Code of Professional Conduct, how is the public interest" defined? (Be sure to include a reference to the location in the Code where you found your answer.) Based on the Code of Professional Conduct and the IFAC's Policy Position, who is the "public"? Of those included in the public, to whom do accountants owe their primary duty? Do you believe this definition is adequate? What do you believe is missing from the definition that could improve its clarity?

Answer 1

As per the AICPA Code of Professional Conduct, the public interest is defined as the collective well-being of the community of people and institutions that the profession serves. (0.300.030.03)

“Public” consists of clients, credit grantors, governments, employers, investors, the business and financial community, and others who rely on the objectivity and integrity of members to maintain the orderly functioning of commerce.

Members of the American Institute of Certified Public Accountants have responsibilities to all those who use their professional services.

The AICPA’s approach towards Ethics is more of Rules-based. The observation is that the approach should be focusing more towards the promotion of virtues and character traits to which the members should aspire.

A member in public practice shall not disclose any confidential client information without the specific consent of the client.

There are four scenarios where disclosure of confidential information is acceptable

1. For compliance with Standard Rules and Accounting principles
2. For the obligation to comply with a validly issued subpoena, laws, and government regulations
3. For providing information for review of a member’s professional practice under AICPA or state CPA society or Board of Accountancy authorization
4. For a member to initiate complaints, response to any inquiry about professional ethics regulatory bodies (i.e: state CPA society or Board of Accountancy)

According to section 7.4.1, consequences of violating section 301 is to face a trial of the Board regarding expulsion or suspension of membership for a period less than 2 years