AICPA Code of Professional Conduct
Janet Tran
ETH/376
July 07, 2014
Katherine Parks

The AICPA Code of Professional Conduct principles are considered the foundation of ethical reasoning in accounting because it creates a framework to guide the performance of an accountant’s professional responsibilities and places accountability to accountants to have unyielding commitment to act ethically at all times. The code of conduct serves many purposes but there are three main purposes that are the most important. One of the first most important purposes of the code of conduct is to protect the public. According to Ethical Obligations and Decision Making (Mintz & Morris, 2011), the public interest includes “clients, credit grantors, governments, employers, investors, the business, and financial community, and others who rely on the objectivity and integrity of CPA’s to maintain the orderly functioning of commerce.” Accountants use the principles defined in the code of conduct to help them make ethically sound decision throughout the day. This creates an open and honest communication between the all parties within the public. If accountants reported only what would benefit one public group, such as the company they are reporting for and not the investors, then that would harm one or more of the groups within the public financially. Accountant’s can base their judgment on how to handle situations ethically when they remember whom they are here to protect, which is the public. The second most important purposes of the code of conduct are to help guide accountants in understanding their duties and responsibilities so that they can make ethical decisions. Accountants hold a lot of power when handling a company’s financial reports. If an accountant makes an unethical decision because they are not aware of the negative consequences, then that would be detrimental to the company, the accountant, and anyone with a personal interest in the company. That is why it is important to have a document like the code of conduct that clearly defines what would be an ethically sound decision. To have a clear framework establishes a guide where many accountants can go to make sure they remain ethical. Third most important purpose of the code of conduct are to