Generally Accepted Auditing Standards and Code of Professional ConductThe IACPA Code of professional conduct is designed to provide a framework for expanding professional services & responding to the other changes in the profession such as increasingly competitive environment. It consists of two sections. 1. The principles. are – oriented positively stated discussion of the profession s responsibilities to the public, clients & fellow practitioners. The Pr-les provide the framework for the Rules, The second section of the Code. The Rules are enforceable applications of the Pr-les. They define acceptable behavior & identify sources of authority for performance standards.To clarify the rules IACPA issue Interpretations. Every executive committee issues its own related interpretations. IACPA also issues Ethics Rulings that explain the application of the rules & Interpretations to specifical factual circumstances involving professional ethics. Membership in AICPA is voluntary. By accepting membership, a certified Public Accountant assumes an obligation of self-disipline above & beyond the requirements of law & regulations.Principles are to express the prof recognition of its responsibilities to the public, to clients, colleagues. They guide members in the performance of their prof responsibilities & express the basic tenets of the ethical & prof conduct.they call for unswerving commitment to honorable behavior even at the sacrifice of personal advantage. PRINCIPLES: 1. Article 1 Responsibilities. members should exercise sensitive prof & moral judgments in all their activities. 2.The public interest. M should accept the obligation to act in a way that will serve the public interest, honor the public trust, & demonstrate commitment to professionalism 3.Integrity.M should perform all professional responsibilities with the highest sense of integrity. 4.Objectivity & independence & be free of conflicts of interests in discharging prof responsibilities. 5.Due care. the should observe technical & ethical standards, strive continually to improve competence & the quality of services, & discharge prof responsibility to the best of member’s ability. 6.Scope & nature of Services. A M in public practice should observe the Principles of the Code of Prof conduct in determining the scope & nature of services to be provided. In order to answer to provide special service to individual circumstances. RULES: Applicability. The bylaws of the IACPA require that member adhere to the Rules of the Code of prof Conduct. They must be prepared to justify the departure from Rules.
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