Question

Which of the following statements regarding the AICPA Code of Professional Conduct is INCORRECT?

1) The principles are not enforceable.
2) The Code consists of principles, rules, interpretations, and other guidance for AICPA members.
3) The Code provides guidance only to members in public practice with respect to performance of their professional responsibilities.
4) The principles express the basic tenets of ethical conduct and provide the framework for the rules that govern the performance of a member's professional responsibilities.

Answer 1

The incorrect statement about the AICPA Code of Professional Conduct is that it provides guidance only to members in public practice. The Code actually applies to all AICPA members across various professional capacities.

Step-by-step explanation:

The incorrect statement regarding the AICPA Code of Professional Conduct is: 3) The Code provides guidance only to members in public practice with respect to performance of their professional responsibilities. This statement is incorrect because the Code provides guidance for AICPA members in all areas of professional responsibilities, not only to those in public practice. The AICPA Code of Professional Conduct indeed consists of principles, rules, interpretations, and other guidance, and while the principles serve as a framework and are not directly enforceable, the rules that derive from these principles are mandatory and enforceable for AICPA members.

The principles express the basic tenets of ethical conduct and set the foundation for the enforceable rules that govern a member's professional responsibilities. The Code is designed to ensure that AICPA members uphold the ethics and standards of the profession in whatever role they serve, whether in public practice, business, education, or government.