Academic journal article Journal of Accountancy

Council Endorses Ethics Proposals; Member Vote to Follow. (Highlights)

Academic journal article Journal of Accountancy

Council Endorses Ethics Proposals; Member Vote to Follow. (Highlights)

Article excerpt

In a move to strengthen the openness and responsiveness of the AICPA's ethics enforcement procedures, its governing council on April 28 approved three proposals. One, concerning public admonishment of members who violate the Code of Professional Conduct, required council approval only and is effective immediately. In accordance with AICPA bylaws, the other two will be submitted to the membership for a vote within 180 days of the council's action. Members will receive ballots in late August or early September. These proposals continue an AICPA effort begun in mid-2001 before the fall of Enron and reflect the Institute's commitment to holding its members to the highest standards.

Proposal on admonishment sanction. Effective when Council approved it, this proposal allows the professional ethics executive committee (PEEC), where warranted, to publicly admonish (censure) an AICPA member who has violated the Code of Professional Conduct where other sanctions--such as suspension of membership or the issuance of a private letter of required corrective action--are not appropriate under the circumstances. Adoption of this proposal aligns the Institute's approach to discipline with that of other bodies, including the joint trial board and state and federal regulators.

Proposal on automatic discipline. This proposal, which requires membership approval, would establish an enforcement policy allowing the PEEC to automatically sanction an AICPA member without an investigation if the member is disciplined by a government agency or other organization--such as the Securities and Exchange Commission or the Public Company Accounting Oversight Board--possessing the authority to regulate accountants. …

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