Ethical Standards of American Institute of Certified Public Accountants - Essay Example

The paper "Ethical Standards of the American Institute of Certified Public Accountants" is an outstanding example of an essay on finance and accounting. Accounting ethics deals with the study and application of moral principles and judgments as they apply to the information contained and reported in accounting reports and financial statements. Whether public or private, all organizations would like to be audited by certified and qualified accountants and get their stamp of approval on their accounting records. In this paper, we will discuss and compare the ethical standards and codes of conduct of the AICPA with the SSTS and the IMA.

Discussion

The code of conduct of the AICPA has two sections-Principles and Rules. The principles of the AICPA provide guidance for the rules, as regards the standards of professional conduct to be adopted by the members. The code of conduct provides leadership and guidance to the members in the performance of their duties- whether belonging to the private, the public or the accounting education sector. If any member fails to adhere to the code of conduct, the individual or firm can be asked to attend disciplinary proceedings and even lose the license to practice, as determined by peers or public opinion. Members are required to know their professional responsibilities, act with integrity, objectivity and independence, follow the generally accepted accounting principles and meet their responsibilities to clients, colleagues and the general public.

   The SSTS or Statement on Standards for Tax Services relate to the tax standards and regulations that must be met by members of the AICPA. This is regardless of the area of practice of the AICPA members. These standards reflect the AICPA member’s professional responsibilities towards the general public, the client and the Government. There is guidance, articles on professional standards and exposure drafts on interpretations of various tax laws. For example, there is guidance regarding tax planning, how to review third party opinions and how to give a professional opinion oneself. Both prospective and completed transactions are covered, as well as how to give oral and written opinions, and how to prepare tax returns.  Included is a five-step process on how to provide tax opinions as well as give a review of third party opinions. AICPA also has courses on how to prepare individual tax returns and advise clients on new changes and tax-saving strategies, as well as other new developments in this area.

IMA’s statement of principles governs its practice and the standards its conduct in the professional arena. Honesty, Fairness, Objectivity, and Reliability are the four cornerstones of its professional code of conduct. Failure to comply with these principles may result in disciplinary action. In addition to competence, confidentiality, integrity, and credibility, the procedure is also outlined for the resolution of ethical conflict. I would personally rate this site the best for the easy and succinct way in which these have been presented and moreover it gives the professional accountant a path to be followed in cases of any ethical conflicts which may arise. Accountants are not only required to give their professional opinion on the reliability, completeness, and accuracy of the information provided but where needed, should also highlight and discuss the deficiencies and alternative treatments possible in respect of reporting requirements.