The CPA's Guide to Professional Ethics

By Love, Vincent J. | The CPA Journal, May 2001 | Go to article overview

The CPA's Guide to Professional Ethics


Love, Vincent J., The CPA Journal


THE CPA'S GUIDE TO PROFESSIONAL ETHICS By Dan M. Guy, Douglas R. Carmichael and Linda A Lach Published by John Wiley & Sons, Inc. [(800) 225-5945 or www wiley, 336 pages; $65; ISBN: 0-471-3803 7-7

Once again, Dan Guy and Douglas Carmichael, this time joined by professional development expert Linda Lach, have given the profession a much-needed, easy-to-follow guide. The CPA's Guide to Professional Ethics is a comprehensive compendium that covers every aspect of ethics for all of the services performed by CPAs. This book-a must for every CPA who performs professional services in public practice, works in industry, or teaches in academia-integrates the rules, regulations, and interpretations of the AICPA Code of Professional Conduct, SEC, Independence Standards Board (ISB), Department of Labor, and state CPA societies.

To facilitate the reader's search for information on any ethics topic, each chapter begins with an overview of the subjects covered. Each section begins with basic concepts and continues in sufficient detail to give the reader a good understanding of the ethics rule and its application. While they initially focus on the AICPA's code, the authors address the application of the ethics rules under the different ethics regulatory authorities' rules and explain any variance in the requirements. The authors provide helpful notes that clarify certain vague rules and interpretations, give additional background information, and reference other regulatory authorities' differing requirements. Throughout the book, examples and charts enhance the reader's understanding and evaluation of ethics issues.

While I did not review the book for technical accuracy, I encountered no technical deficiencies. I also agreed with all of the authors' advice and with their additional guidance when an underlying ethics rule or interpretation was vague or did not cover a specific situation.

The book is divided into five major parts with several chapters each:

A) Introduction to ethics

B) Overview of independence, integrity, and objectivity

C) Independence requirements for members in public practice

D) AICPA rules other than independence, integrity, and objectivity

E) Other ethics guidance.

A CPA charged with an ethics violation will find the chapter "Ethics Enforcement-What a Member Needs to Know" particularly helpful. It contains a good, concise description of the process, the possible outcomes, and a member's rights. More important, the authors give excellent advice on how to approach a disciplinary action.While I do not fully agree that a lawyer is necessary in all circumstances, I agree that the CPA should consider consulting with a lawyer before responding to an opening letter from the investigating authority and should accept the opportunity to appear for an interview with the investigators.

An important point made clear in Part B is that a CPA is always subject to the ethics rules of the AICPA or applicable state society whenever the member provides professional services. Professional services encompass all services performed by a member while holding out as a CPA. The member is also subject to the laws governing the practice of a CPA in a state where the CPA is licensed.

In the chapter "Basic Concepts of Rule 101, Independence, and Rule 102, Integrity and Objectivity," the authors succinctly and directly state the ethics responsibilities of CPAs not in public practice:

CPAs employed by others to prepare financial statements or to perform internal auditing, tax or consulting services are charged with the same responsibility for objectivity as those in public practice.

They must be scrupulous in the application of generally accepted accounting principles and candid in all their dealings with CPAs in public practice.

Chapter 6, "Requirements for Integrity and Objectivity (Including Freedom from Conflicts of Interest)," addresses nonattest services.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The CPA's Guide to Professional Ethics
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.