Question

If there is no specific rule of conduct addressing a particular relationship in the AICPA code, what should the CPA do a) Rely on the general principles outlined in the code

b) Seek advice from other CPAs
c) Disregard the issue
d) Follow the rules for similar situations

Answer 1

A CPA should rely on general principles, seek advice from peers, follow rules for similar situations, and exercise judgment when encountering a situation not covered by AICPA code specifics.

Step-by-step explanation:

If there is no specific rule of conduct addressing a particular relationship in the AICPA code, the CPA should rely on the general principles outlined in the code, seek advice from other CPAs, follow the rules for similar situations, and exercise professional judgment. Extra guidance can be sought from the AICPA's Professional Ethics Division or from other professionals experienced in the ethical conduct of CPAs. It is imperative that the CPA does not disregard the issue, but instead actively seeks a solution that aligns with the ethical standards of the profession.