Renew your pledge: CPAs can respond to turmoil with a renewed commitment to ethical standards.
The past two years have been tumultuous for the accounting profession. To move forward in a way that is viable and credible,everyone in the profession must recommit re·com·mit
tr.v. re·com·mit·ted, re·com·mit·ting, re·com·mits
1. To commit again.
2. To refer (proposed legislation, for example) to a committee again. themselves to our principles of professional conduct and communicate these values to the public.
CODE APPLIES TO ALL
As a CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. in California and CalCPA member, you have agreed to abide by To stand to; to adhere; to maintain.
See also: Abide CalCPA's Code of Professional Conduct, which conforms to the AICPA AICPA
See American Institute of Certified Public Accountants (AICPA). Code of Professional Conduct and the regulations set forth by the California Board of Accountancy. These rules and regulations are not just for auditors: the code applies to all CPAs.
Additionally, California CPAs are required every six years to take a course hi professional conduct and ethics ethics, in philosophy, the study and evaluation of human conduct in the light of moral principles. Moral principles may be viewed either as the standard of conduct that individuals have constructed for themselves or as the body of obligations and duties that a to review principles and discuss how they impact CPAs.
The AICPA Code of Professional Conduct states the principles by which we should act and the responsibilities we have to our clients, colleagues and the public. According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the code, these principles "guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The principles call fur an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage."
So, regardless el the personal costs, the code must be upheld. It may mean a loss of a job or client, but if the profession is to move forward, then we must bear that cost.
TIME FOR REVIEW
Don't wait six years to review your practices, in the past year at the regulatory level there have been many changes that affect all of us, not just a few large firms. With the demise of Authur Andersen and numerous business failures over the past year, it's time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a that we review the policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental within our offices as they relate to communicating the Principles of Professional Conduct to our staff and to our clients. Do we train those around us to know and carry out the principles in their daily activities?
A CPA is charged with considering the public interest first, along with objectivity, independence and integrity. While we are not always required to be independent, we are always required to maintain integrity--with our clients and staff--in all things that we do. How do you teach your firm or business to uphold up·hold
tr.v. up·held , up·hold·ing, up·holds
1. To hold aloft; raise: upheld the banner proudly.
2. To prevent from falling or sinking; support.
3. these principles of professional conduct?
In addition, I challenge committee chairs, as well as the CalCPA leadership to continually review what their committees do to uphold the principles of professional conduct.
How are you protecting the public interest? When you examine accounting principles or government accounting principles, do you consider how it will affect the public interest and the public trust? Or do you review those principles in terms of how much they going to cost you as CPAs or how much they are going to be a burden upon you and your clients?
I challenge each of you to take a few minutes to download the Principles of Professional Conduct from the AICPA website--www.aicpa.org--and then periodically review them so you have an understanding of them, can communicate them to those around you and integrate them into your practice as a CPA.
Promises, Promises ...
The following are experpts from the AICPA's Code of Professional Conduct:
PREAMBLE A clause at the beginning of a constitution or statute explaining the reasons for its enactment and the objectives it seeks to attain.
Generally a preamble is a declaration by the legislature of the reasons for the passage of the statute, and it aids in the interpretation of
.01 Membership in the American Institute 0t Certified Public Accountants Certified Public Accountant (CPA)
An accountant who has met certain standards, including experience, age, and licensing, and passed exams in a particular state. is voluntary. By accepting membership, a certified public accountant assumes an obligation of self discipline above and beyond the requirements of laws and regulations.
.02 These Principles ... guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The Principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage.
SECTION 52-ARTICLE I: Responsibilities
In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities.
.01 As professionals, certified public accountants perform an essential role in society. Consistent with that role, members of the American Institute of Certified Public Accountants With over 330,525 CPA members (in August 2006), the American Institute of Certified Public Accountants (AICPA) is the largest professional organization of Certified Public Accountants (CPAs) in the United States of America. have responsibilities to all those who use their professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. .
SECTION 53-ARTICLE II: The Public Interest
Members should accept the obligation to act in a way that will serve the public interest, honor the public trust and demonstrate commitment to professionalism.
.01 The accounting profession's public consists of clients, credit grantors, governments, employers, investors, e business and financial community, and others who rely n the objectivity and integrity of certified public accountants to maintain the orderly functioning of commerce.... The public interest is defined as the collective well-being of the community of people and institutions the profession serves.
.02 In discharging their professional responsibilities, members may encounter conflicting pressures from among each of those groups. In resolving those conflicts, members should act with integrity, guided by the precept An order, writ, warrant, or process. An order or direction, emanating from authority, to an officer or body of officers, commanding that officer or those officers to do some act within the scope of their powers. Rule imposing a standard of conduct or action. that when members fulfill their responsibility to the public, clients' and employers' interests are best served.
.03 Those who rely on certified public accountants expect them to discharge their responsibilities with integrity, objectivity, due professional care, and a genuine interest in serving the public.
Curt Eakin, CPA, of Curt R. Eakin, CPA, P/C, is chair of CalCPA's Committee on Professional Conduct. You can reach him at crecpaapc@aoL com.