Accounting Code of Ethics

Essay by stickkUniversity, Bachelor'sA, July 2009

download word file, 9 pages 0.0

Downloaded 53 times

Accounting codes of professional conduct, or codes of ethics, influence the behavior of accountants, provides for discipline, punishes unethical behavior, and explains standards, rules and technical requirements of the profession. In Florida, the State provides a Code of Ethics applicable to CPAs, but there are other organizations that also provide guidance for accountants, although adherence to their guidelines are more voluntary, whereas CPAs are bound to adhere to the rules, code of ethics and continuing professional development by their licensing agreement, like doctors or lawyers, published by the State. Board of Accountancy of the State of Florida is the entity charged with defining and enforcing these rules, in conjunction with Florida Department of Business and Professional Regulation.

State's position of accounting work productThe Board of Accountancy has rules on how clients' work product is treated under specific circumstances. For example, how long does a CPA firm need to retain the clients' original bank records, such as bank statements, cancelled checks, paid bills and account receivable statements.

Accounting concepts are a foreign language to some lawyers in almost all cases and to almost all lawyers in some cases. As financial litigation becomes more complex, this often-quoted statement helps explain why attorneys sometimes need to use the services of accountants. Litigation support has become so much a part of the accounting profession that the American Institute of CPAs Code of Professional Conduct defines the practice of public accounting as including "litigation support services. For many lawyers, the need to consult a CPA is particularly acute when they work with financial statements, determine a client's net worth, and try to understand a business' books and records or handle tax matters. There is no common law testimony previlage which an accountant and his client may invoke to prevent disclouse of information which the...