Code of Personal Ethics

Code of Professional Ethics and Conduct

Code of Professional Ethics and Conduct

Abstract

This paper will identify separate cases where a CPA has violated Rule 102 – Integrity and Objectivity, Rule 201 – Professional Competence, Rule 202 – Compliance with Standards, and Rule 501 – Acts Discreditable, discuss the expectation of the code and how the CPA violated it, discuss the disciplinary action taken, discuss whether I agree or disagree with the disciplinary action taken, and determine how the AICPA can prevent this type of breach in the code of conduct in the future.

Code of Professional Ethics and Conduct

Identify where a CPA has violated Rule 102 – Integrity and Objectivity and discuss the disciplinary action taken.

Rule 102 is defined as retaining objectivity and integrity in the performance of any professional service. (ET Section 102, 1988) The member shall always conduct themselves to be free of any conflicts of interest and shall not knowingly misrepresent facts or have their judgment influenced by others. (ET Section 102, 1988) An accountant who acts intentionally or knowingly, including recklessly or highly unreasonably when heightened scrutiny is warranted, conclusively demonstrates a lack of competence to practice before the Commission. (Final Rule: Amendment to Rule 102(e) of the Commission's Rules of Practice, 1998) In a case from 2005, disciplinary action taken against, then, CPA Nanette K. Miller was for violating Rule 102. (ET Section 102, 1988) The SEC charged Ms. Miller with not following the guidelines laid out within the generally accepted auditing standards while conducting an audit. (2005 Disciplinary Actions, 2006) Ms. Miller engaged in improper professional conduct within the meaning of Rule 102(e)(1)(ii) of the Commission’s Rules of Practice during her audit of a public company for the year ended December 31, 1994. (2005 Disciplinary Actions, 2006)

The...