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Questions and Answers
What is a key difference between the AICPA Code of Professional Conduct and the International Code of Ethics for Professional Accountants?
What is a key difference between the AICPA Code of Professional Conduct and the International Code of Ethics for Professional Accountants?
- The international code emphasizes detailed ethics rules over principles.
- The AICPA code uses a conceptual framework approach throughout its code.
- The international code may provide different rules for public interest entities. (correct)
- The AICPA code bans auditors from offering gifts and entertainment to clients.
Which code places more emphasis on detailed ethics rules over principles?
Which code places more emphasis on detailed ethics rules over principles?
- The International code (correct)
- Neither code emphasizes detailed ethics rules or principles
- Both codes equally emphasize detailed ethics rules and principles
- The AICPA code
What approach does the AICPA code use throughout its code?
What approach does the AICPA code use throughout its code?
- An emphasis on principles over detailed rules
- A detailed set of ethics rules
- A conceptual framework approach (correct)
- A ban on offering gifts and entertainment to clients
What is one specific activity that the AICPA code bans auditors from doing?
What is one specific activity that the AICPA code bans auditors from doing?
Flashcards
AICPA Code vs. International Code difference?
AICPA Code vs. International Code difference?
The International Code may have different rules for companies that serve a public interest.
Which code is more rule-based?
Which code is more rule-based?
The International Code emphasizes detailed rules over principles.
AICPA code's approach?
AICPA code's approach?
The AICPA Code uses a conceptual framework.
AICPA auditor prohibition?
AICPA auditor prohibition?
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Study Notes
Key Differences between AICPA and International Code of Ethics
- AICPA Code of Professional Conduct is more prescriptive, emphasizing detailed ethics rules, while the International Code of Ethics for Professional Accountants focuses on broad ethical principles.
Emphasis on Rules vs. Principles
- AICPA places greater emphasis on specific ethics rules compared to the International Code, which prioritizes principles that guide ethical behavior.
AICPA Code Approach
- The AICPA Code utilizes a principles-based approach while integrating specific rules to foster adherence among members.
Prohibited Activities for Auditors
- The AICPA Code specifically bans auditors from performing non-audit services for audit clients to maintain independence and objectivity.
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