AICPA Code of Professional Conduct
The AICPA Code of Professional Conduct is a collection of codified statements issued by the American Institute of Certified Public Accountants that outline a CPA's ethical and professional responsibilities. The code establishes standards for auditor independence, integrity and objectivity, responsibilities to clients and colleagues and acts discreditable to the accounting profession. The AICPA is responsible for drafting, revising and reissuing the code annually, on June 1. The current Code is available at the Web site. For older versions of the Code, see the links below.
History
outlined the debate and issues in setting up a Code of Professional Conduct in his address to the annual meeting of the American Association of Public Accountants in 1907 The earliest "official" version of the code of professional conduct among American accountants was issued by the American Institute of Accountants on April 9, 1917.Notable sections
Section 51 - Preamble
The opening principle of the code is that membership, and therefore adherence, to the code is voluntary. This means that an accountant is never under a legal responsibility to adhere to the code, and can renounce the code and membership in the AICPA at any time.Section 101 - Independence
Section 101 sets forth the various requirements to establish auditor independence and conditions that nullify it. Knowingly allowing a member who is not independent to continue to work on an engagement can result in disciplinary action from the AICPA, including possible revocation of the members status as a CPA. Generally, the following actions will impair auditor independence:- Authorizing, executing or consummating a transaction, or otherwise exercising authority on behalf of a client or having the authority to do so.
- Preparing source documents, in electronic or other form, evidencing the occurrence of a transaction.
- Having custody of client assets.
- Supervising client employees in the performance of their normal recurring activities.
- Determining which recommendations of the member should be implemented.
- Reporting to the board of directors on behalf of management.
- Serving as a client's stock transfer or escrow agent, registrar, general counsel or its equivalent.
- Establishing or maintaining internal controls, including performing ongoing monitoring activities.
When the auditing member has a previous employment relationship with the client, barring certain exceptions, the auditor is required to liquidate any employee welfare programs that they have vested benefits in and collect or pay any loans outstanding to the client. The immediate family of the auditor is considered part of the test for impairment of independence. The exception to this is that the immediate family members of auditors are allowed to work for the client in non-management roles. If the auditor provides non-attest services such as tax support or consulting, they are required to adhere to the independence requirements of other regulatory bodies that govern those services. Failure to do so will impair their independence for their audit engagement as well.
List of AICPA Code of Conduct and by-laws sections from AICPA Professional standards, 1974-2007
| No. | Date | Official title | - |
| 1974 | September 1 | AICPA Professional Standards: Ethics, Bylaws, as of September 1, 1974 | |
| 1975 | September 1 | AICPA Professional Standards: Ethics, Bylaws, as of September 1, 1975 | |
| 1976 | July 1 | AICPA Professional Standards: Ethics, Bylaws, as of July 1, 1976 | |
| 1977 | July 1 | AICPA Professional Standards: Ethics, Bylaws, as of July 1, 1977 | |
| 1978 | July 1 | AICPA Professional Standards: Ethics, Bylaws, Quality control, as of July 1, 1978 | |
| 1979 | July 1 | AICPA Professional Standards: Ethics, Bylaws, Quality control, as of July 1, 1979 | |
| 1980 | June 1 | AICPA Professional Standards: Ethics, Bylaws, Quality control, as of June 1, 1980 | |
| 1981 | June 1 | AICPA Professional Standards: Ethics, Bylaws, Quality control, as of June 1, 1981 | |
| 1982 | June 1 | AICPA Professional Standards: Ethics, Bylaws, as of June 1, 1982 | |
| 1983 | June 1 | AICPA Professional Standards: Ethics, Bylaws, as of June 1, 1983 | |
| 1984 | June 1 | AICPA Professional Standards: Ethics, Bylaws, as of June 1, 1984 | |
| 1985 | June 1 | AICPA Professional Standards: Ethics, Bylaws, as of June 1, 1985 | |
| 1986 | June 1 | AICPA Professional Standards: Ethics, Bylaws, as of June 1, 1986 | |
| 1987 | June 1 | AICPA Professional Standards: Ethics, Bylaws, as of June 1, 1987 | |
| 1988 | June 1 | AICPA Professional Standards: Code of conduct, Bylaws, as of June 1, 1988 | |
| 1989 | October 1 | AICPA Professional standards: Code of conduct, Bylaws, as of October 1, 1989 | |
| 1990 | June 1 | AICPA professional standards: Code of conduct, Bylaws, as of June 1, 1990 | |
| 1991 | June 1 | AICPA Professional Standards: Code of Conduct, Bylaws, as of June 1, 1991 | |
| 1992 | June 1 | AICPA professional standards: Code of professional conduct and Bylaws as of June 1, 1992 | |
| 1993 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 1993 | |
| 1994 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 1994 | |
| 1995 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 1995 | |
| 1996 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 1996 | |
| 1997 | June 1 | AICPA professional standards: Code of professional conduct as of June 1, 1997 | |
| 1997 | June 1 | AICPA professional standards: Bylaws as of June 1, 1997 | |
| 1998 | June 1 | AICPA professional standards: Code of professional conduct as of June 1, 1998 | |
| 1998 | June 1 | AICPA professional standards: Bylaws as of June 1, 1998 | |
| 1999 | April 1 | AICPA professional standards: Code of professional conduct and bylaws as of April 1, 1999 | |
| 2000 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2000 | |
| 2001 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2001 | |
| 2002 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2002 | |
| 2003 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2003 | |
| 2004 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2004 | |
| 2005 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2005 | |
| 2006 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2006 | |
| 2007 | June 1 | AICPA professional standards: Code of professional conduct and bylaws as of June 1, 2007 |
List of AICPA Code of Conduct and By-Laws Sections published as pamphlets, 1917-1997
| Year | Date | Official title | - |
| 1917 | April 9 | Rules of professional conduct : prepared by the Committee on Professional Ethics and approved by the Council April 9, 1917 | |
| 1919 | September 30 | Rules of professional conduct : including amendments and additions prepared by the Committee on Professional Ethics and approved by the Council prior to September 30, 1919 | |
| 1927 | By-laws and rules of professional conduct as amended September, 1927 | ||
| 1930-1931 | By-laws and rules of professional conduct, 1930-1931 | ||
| 1931-1932 | By-laws and rules of professional conduct, 1931-1932 | ||
| 1936 | By-laws and rules of professional conduct as amended to December 1, 1936 | ||
| 1937-1938 | By-laws and rules of professional conduct, 1937-1938 | ||
| 1938-1939 | By-laws and rules of professional conduct, 1938-1939 | ||
| 1940 | By-laws and Rules of professional conduct, 1940 | ||
| 1941 | By-laws and Rules of professional conduct, 1941 | ||
| 1942 | By-laws and rules of professional conduct, 1942 | ||
| 1943 | By-laws and rules of professional conduct, 1943 | ||
| 1944 | By-laws and rules of professional conduct 1944 | ||
| 1945 | By-laws and rules of professional conduct 1945 | ||
| 1946 | By-laws and rules of professional conduct 1946 | ||
| 1948 | By-laws and rules of professional conduct 1948 | ||
| 1949-1950 | By-laws, rules of professional conduct 1949-1950 | ||
| 1950 | December 18 | By-laws, Rules of professional conduct, as amended by vote of the membership December 19, 1950 | |
| 1952 | By-laws,Rules of professional conduct 1952 | ||
| 1954 | January 4 | By-laws, Rules of professional conduct 1954 | |
| 1956 | January 9 | By-laws, Rules of professional conduct 1956 | |
| 1958 | By-laws; Rules of professional conduct; Numbered opinions of the committee on professional ethics | ||
| 1959 | By-laws, Rules of professional conduct, Numbered opinions of the Committee on Professional Ethics, 1959 | ||
| 1960 | February 2 | By-laws, Rules of professional conduct, Numbered opinions of the Committee on Professional Ethics, 1960 | |
| 1961 | By-laws, Rules of professional conduct, Numbered opinions of the Committee on Professional Ethics, Objectives of the Institute adopted by Council, 1961 | ||
| 1964 | By-laws; Code of professional ethics; Numbered opinions of the Committee on Professional Ethics; Objectives of the Institute adopted by Council | ||
| 1965 | By-laws; Code of professional ethics; Numbered opinions of the Committee on Professional Ethics; Objectives of the Institute adopted by Council | ||
| 1965 | Code of professional ethics & numbered opinions 1965 | ||
| 1967 | March 20 | Code of professional ethics as amended March 4, 1965; By-laws as amended March 20, 1967; Numbered opinions of the Committee on Professional Ethics; Objectives of the Institute adopted by Council; Description of the Professional Practice of Certified Public Accountants | |
| 1969 | December 30 | Code of professional ethics as amended December 30, 1969, and interpretative opinions | |
| 1969 | By-laws as amended February 20, 1969 | ||
| 1970 | Summaries of ethics rulings | ||
| 1972 | Restatement of the code of professional conduct;Concepts of professional ethics; Rules of conduct; Interpretations of rules of conduct | ||
| 1973 | March 1 | Code of professional ethics, Effective March 1, 1973; Concepts of professional ethics; Rules of conduct; Interpretations of rules of conduct | |
| 1974 | March | Code of professional ethics, Effective March 1, 1973; March 1974 edition;Concepts of professional ethics; Rules of Professional ethics; Interpretations of rules of conduct | |
| 1974 | February 1 | Bylaws as amended February 1, 1974; Implementing resolutions of Council; Objectives of the Institute; Description of the professional practice of certified public accountants | |
| 1975 | March | Code of professional ethics, Effective March 1, 1973, March 1975 edition;Concepts of professional ethics ;Rules of conduct; Interpretations of rules of conduct | |
| 1976 | March 1 | Code of professional ethics, March 1, 1976, edition; Concepts of professional ethics; Rules of conduct, effective March 1, 1973;Interpretations of rules of conduct; Ethics rulings | |
| 1977 | May 1 | Code of professional ethics, May 1, 1977, edition;Concepts of professional ethics; Rules of conduct, effective March 1, 1973; Interpretations of rules of conduct; Ethics rulings | |
| 1978 | March 31 | Rules of conduct as amended March 31, 1978;Bylaws and implementing resolutions of Council as amended March 31, 1978 | |
| 1981 | October 15 | Bylaws and implementing resolutions of Council as amended October 15, 1981;Rules of conduct of the code of professional ethics as amended March 31, 1979 | |
| 1983 | May 10 | Bylaws and implementing resolutions of Council as amended May 10, 1983;Rules of conduct of the code of professional ethics as amended January 6, 1983 | |
| 1984 | Concepts of professional ethics; Rules of conduct of the code of professional ethics as amended January 6, 1983; Bylaws and implementing resolutions of Council as amended May 10, 1983 | ||
| 1985 | May 15 | Concepts of professional ethics; Rules of conduct of the code of professional ethics as amended January 6, 1983; Bylaws and implementing resolutions of Council as amended May 15, 1985 | |
| 1988 | January 12 | Code of professional conduct as adopted January 12, 1988; Bylaws and implementing resolutions of Council as amended January 12, 1988 | |
| 1991 | May 20 | Code of professional conduct as amended May 20, 1991;Bylaws and implementing resolutions of Council as amended January 8, 1990 | |
| 1992 | January 14 | Code of professional conduct as amended January 14, 1992; Bylaws and implementing resolutions of Council as amended January 14, 1992 | |
| 1993 | May 26 | Code of professional conduct as amended January 14, 1992; Bylaws and implementing resolutions as amended May 26, 1993 | |
| 1996 | June 17 | Code of professional conduct as amended January 14, 1992; Bylaws and implementing resolutions of Council as amended June 17, 1996 | |
| 1997 | October 28 | Code of professional conduct and implementing resolutions of Council as amended October 28, 1997; Bylaws and implementing resolutions of Council as amended October 28, 1997 |