ethics & professional standards
CPA guidance for resolving ethical conflicts By Laura Hay, CPA, CAE, OSCPA executive vice president Doing the right thing comes naturally to CPAs, right? With
1. Identify the dilemma: Recognizing that there is an ethical
our training in higher order skills, including critical thinking,
dilemma can be the most difficult part. Keeping current on
skepticism and professional judgment, and our acceptance
the rules, implementing internal quality control practices and
of responsibility to the public interest, an understanding of
obtaining permitted consultation on matters can help clarify
our ethical and professional responsibilities is assumed in
that an ethical question exists.
the value the marketplace attributes to the work that we do.
2. What are the relevant facts? Identify the applicable
Reality, however, is not always that simple. The
rules, laws or regulations that apply to the dilemma. Is there
implementation of the codification of the AICPA Code
a question of CPA professional ethics involved? If so, is
of Professional Conduct in 2014 moved the profession’s
there a rule or interpretation of the Code of Professional
ethics rules to more principles-based considerations, but
Conduct that addresses the situation?
the project also codified a new decision-making framework CPAs can reference in addressing ethical dilemmas. The codification put in place two new conceptual frameworks: one for members in public practice, and one for members in industry, and also added new interpretations for addressing ethics conflicts. The process can at times be circular, but let’s outline a flow in which there is a question of CPA professional ethics involved:
10 | CPA Voice
In the absence of an interpretation of a rule of conduct that addresses a particular relationship or circumstance, the member should apply the appropriate conceptual framework: Conceptual Framework for Members in Public Practice [ET 1.000.010] Conceptual Framework for Members in Business [ET 2.000.010]
