Aicpa Code of Professional Conduct PDF

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AICPA Code of Professional Conduct

Effective December 15, 2014. Updated for all official releases through June 2019.

Copyright © 2019, American Institute of Certified Public Accountants, Inc. All Rights Reserved.

Table of Contents Preface: Applicable to All Members ...................................................................................... 1 0.100 Overview of the Code of Professional Conduct ........................................................ 1 .01 ................................................................................................................... 1 .02 ................................................................................................................... 1 .03 ................................................................................................................... 1 0.100.010 Principles and Rules of Conduct ............................................................. 1 0.100.020 Interpretations and Other Guidance .......................................................... 1 0.200 Structure and Application of the AICPA Code ......................................................... 2 0.200.010 Structure of the AICPA Code ................................................................. 2 0.200.020 Application of the AICPA Code .............................................................. 2 0.200.030 Citations ............................................................................................. 3 0.200.040 Transition Provisions ............................................................................ 4 0.200.050 Drafting Conventions ............................................................................ 4 0.300 Principles of Professional Conduct ........................................................................ 5 0.300.010 Preamble ............................................................................................ 5 0.300.020 Responsibilities .................................................................................... 5 0.300.030 The Public Interest ............................................................................... 5 0.300.040 Integrity .............................................................................................. 6 0.300.050 Objectivity and Independence ................................................................. 6 0.300.060 Due Care ............................................................................................ 7 0.300.070 Scope and Nature of Services ................................................................. 7 0.400 Definitions ........................................................................................................ 8 .01 ................................................................................................................... 8 .02 ................................................................................................................... 8 .03 ................................................................................................................... 9 .04 ................................................................................................................... 9 .05 ................................................................................................................... 9 .06 ................................................................................................................... 9 .07 .................................................................................................................. 10 .08 .................................................................................................................. 10 .09 .................................................................................................................. 10 .10 .................................................................................................................. 10 .11 .................................................................................................................. 10 .12 .................................................................................................................. 10 .13 .................................................................................................................. 11 .14 .................................................................................................................. 11 .15 .................................................................................................................. 11 .16 .................................................................................................................. 11 .17 .................................................................................................................. 12 .18 .................................................................................................................. 12 .19 .................................................................................................................. 12 .20 .................................................................................................................. 12 .21 .................................................................................................................. 12 .22 .................................................................................................................. 12 .23 .................................................................................................................. 12 .24 .................................................................................................................. 13 .25 .................................................................................................................. 13 .26 .................................................................................................................. 13 .27 .................................................................................................................. 13 .28 .................................................................................................................. 13 .29 .................................................................................................................. 13

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AICPA Code of Professional Conduct

.30 .................................................................................................................. 14 .31 .................................................................................................................. 14 .32 .................................................................................................................. 14 .33 .................................................................................................................. 14 .34 .................................................................................................................. 14 .35 .................................................................................................................. 14 .36 .................................................................................................................. 15 .37 .................................................................................................................. 15 .38 .................................................................................................................. 15 .39 .................................................................................................................. 15 .40 .................................................................................................................. 15 .41 .................................................................................................................. 16 .42 .................................................................................................................. 16 .43 .................................................................................................................. 16 .44 .................................................................................................................. 16 .45 .................................................................................................................. 16 .46 .................................................................................................................. 16 .47 .................................................................................................................. 16 .48 .................................................................................................................. 17 .49 .................................................................................................................. 17 0.500 Nonauthoritative Guidance ................................................................................. 17 .01 .................................................................................................................. 17 .02 .................................................................................................................. 17 .03 .................................................................................................................. 17 0.600 New, Revised, and Pending Interpretations and Other Guidance ................................ 17 0.600.010 New and Revised Interpretations and Other Guidance ................................ 17 0.600.020 Pending Interpretations and Other Guidance ............................................ 18 0.700 Deleted Interpretations and Other Guidance ........................................................... 18 .01 .................................................................................................................. 18 Part 1 ............................................................................................................................. 22 1.000 Introduction ..................................................................................................... 22 .01 .................................................................................................................. 22 .02 .................................................................................................................. 22 .03 .................................................................................................................. 22 1.000.010 Conceptual Framework for Members in Public Practice .............................. 22 1.000.020 Ethical Conflicts ................................................................................. 28 1.100 Integrity and Objectivity .................................................................................... 29 1.100.001 Integrity and Objectivity Rule ............................................................... 29 Interpretations Under the Integrity and Objectivity Rule ........................................... 29 1.200 Independence ................................................................................................... 37 1.200.001 Independence Rule .............................................................................. 37 Interpretations Under the Independence Rule ......................................................... 37 1.300 General Standards ........................................................................................... 116 1.300.001 General Standards Rule ...................................................................... 117 Interpretations Under the General Standards Rule .................................................. 117 1.310 Compliance With Standards .............................................................................. 119 1.310.001 Compliance With Standards Rule ......................................................... 119 Interpretations Under the Compliance with Standards Rule ..................................... 119 1.320 Accounting Principles ...................................................................................... 119 1.320.001 Accounting Principles Rule ................................................................. 119 Interpretations Under the Accounting Standards Rule ............................................. 120 1.400 Acts Discreditable ........................................................................................... 122 1.400.001 Acts Discreditable Rule ...................................................................... 122 Interpretations Under the Acts Discreditable Rule ................................................. 122

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AICPA Code of Professional Conduct

1.500 Fees and Other Types of Remuneration .............................................................. 130 1.500.008 Unpaid Fees ..................................................................................... 130 1.510 Contingent Fees ...................................................................................... 130 1.520 Commissions and Referral Fees ................................................................. 133 1.600 Advertising and Other Forms of Solicitation ........................................................ 136 1.600.001 Advertising and Other Forms of Solicitation Rule ................................... 136 Interpretations Under the Advertising and Other Forms of Solicitation Rule ................ 136 1.700 Confidential Information .................................................................................. 137 1.700.001 Confidential Client Information Rule .................................................... 137 Interpretations Under the Confidential Client Information Rule ................................ 138 1.800 Form of Organization and Name ....................................................................... 142 1.800.001 Form of Organization and Name Rule ................................................... 143 Interpretations Under the Form of Organization and Name Rule ............................... 143 Part 2 ............................................................................................................................ 147 2.000 Introduction ................................................................................................... 147 .01 ................................................................................................................ 147 .02 ................................................................................................................ 147 2.000.010 Conceptual Framework for Members in Business .................................... 147 2.000.020 Ethical Conflicts ............................................................................... 151 2.100 Integrity and Objectivity .................................................................................. 152 2.100.001 Integrity and Objectivity Rule ............................................................. 152 Interpretations Under the Integrity and Objectivity Rule ......................................... 152 2.300 General Standards ........................................................................................... 162 2.300.001 General Standards Rule ...................................................................... 162 Interpretations Under the General Standards Rule .................................................. 162 2.310 Compliance With Standards .............................................................................. 163 2.310.001 Compliance With Standards Rule ......................................................... 163 Interpretations Under the Compliance with Standards Rule ..................................... 164 2.320 Accounting Principles ...................................................................................... 164 2.320.001 Accounting Principles Rule ................................................................. 164 Interpretations Under the Accounting Principles Rule ............................................. 164 2.400 Acts Discreditable ........................................................................................... 166 2.400.001 Acts Discreditable Rule ...................................................................... 167 Interpretations Under the Acts Discreditable Rule ................................................. 167 Part 3 ............................................................................................................................ 171 3.000 Introduction ................................................................................................... 171 .01 ................................................................................................................ 171 .02 ................................................................................................................ 171 3.000.030 Applicability .................................................................................... 171 3.400 Acts Discreditable ........................................................................................... 171 3.400.001 Acts Discreditable Rule ...................................................................... 171 Interpretations Under the Acts Discreditable Rule ................................................. 171 Appendix A ................................................................................................................... 174 ............................................................................................................................ 174 Appendix B .................................................................................................................... 178 ............................................................................................................................ 178 Appendix C .................................................................................................................... 180 ............................................................................................................................ 180 Appendix D ................................................................................................................... 189 ............................................................................................................................ 189

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Preface: Applicable to All Members 0.100 Overview of the Code of Professional Conduct .01

The AICPA Code of Professional Conduct (the code) begins with this preface, which applies to all members The term member, when used in part 1 of the code, applies to and means a member in public practice; when used in part 2 of the code, applies to and means a member in business; and when used in part 3 of the code, applies to and means all other members, such as those members who are retired or unemployed.

.02

A member may have multiple roles, such as a member in business and a member in public practice. In such circumstances, the member should consult all applicable parts of the code and apply the most restrictive provisions. [No prior reference: new content]

Effective Date .03

Effective December 15, 2014.

0.100.010 Principles and Rules of Conduct .01

The AICPA membership adopted the Code of Professional Conduct (the code) to provide guidance and rules to all members in the performance of their professional responsibilities. The code consists of principles and rules as well as interpretations and other guidance which are discussed in 0.100.020. The principles provide the framework for the rules that govern the performance of their professional responsibilities.

.02

The AICPA bylaws require that members adhere to the rules of the code. Compliance with the rules depends primarily on members’ understanding and voluntary actions; secondarily on reinforcement by peers and public opinion; and ultimately on disciplinary proceedings, when necessary, against members who fail to comply with the rules. Members must be prepared to justify departures from these rules.

0.100.020 Interpretations and Other Guidance .01

Interpretations of the rules of conduct are adopted after exposure to the membership, state societies, state boards, and other int...