Code of Professional Conduct and Bylaws Code of Professional Code of Professional Conduct As of June 1, 2013 and Bylaws Reprinted from AICPA Professional Standards CODEOC13 aicpa.org | cpa2biz.com As of June 1, 2013 2013 Code of Conduct Cover.indd 1 9/5/2013 11:11:03 AM Code of Professional Conduct and Bylaws Reprinted from AICPA Professional Standards 10794-355 As of June 1, 2013 Code of Professional Conduct and Bylaws (as of June 1, 2013) is reprinted from AICPA Professional Standards. Copyright © 2013 by American Institute of Certified Public Accountants, Inc. New York, NY 10036-8775 All rights reserved. For information about the procedure for requesting permission to make copies of any part of this work, please e-mail [email protected] with your request. Otherwise, requests should be written and mailed to the Permissions Department, AICPA, 220 Leigh Farm Road, Durham, NC 27707-8110. 1 2 3 4 5 6 7 8 9 0 PE 1 9 8 7 6 5 4 3 ISBN: 978-1-94023-516-5 P1: ssn ACPA241p-FM ACPA202-Vol-I-PS.cls July 16, 2012 15:0 Table of Contents iii Section Page ... How to Use This Volume ...... ................ 1 CODE OF PROFESSIONAL CONDUCT ET ... Code of Professional Conduct—Introduction ................. 2815 ET 50 Principles of Professional Conduct........................... 2817 51—Preamble 52—Article I—Responsibilities 53—Article II—The Public Interest 54—Article III—Integrity 55—Article IV—Objectivity and Independence 56—Article V—Due Care 57—Article VI—Scope and Nature of Services ET 90 Rules: Applicability and Definitions .......................... 2833 91—Applicability 92—Definitions ET 100 Independence, Integrity, and Objectivity..................... 2845 100-1—Conceptual Framework for AICPA Independence Standards 101—Independence Rule 101—Independence Interpretations Under Rule 101—Independence 102—Integrity and Objectivity Rule 102—Integrity and Objectivity Interpretations Under Rule 102—Integrity and Objectivity 191—Ethics Rulings on Independence, Integrity, and Objectivity ET 200 General Standards—Accounting Principles .................. 2933 201—General Standards Rule 201—General standards Interpretations Under Rule 201—General Standards 202—Compliance With Standards Rule 202—Compliance with standards Interpretation under Rule 202— Compliance With Standards 203—Accounting Principles Rule 203—Accounting Principles Interpretations under Rule 203— Accounting Principles 291—Ethics Rulings on General and Technical Standards Contents P1: ssn ACPA241p-FM ACPA202-Vol-I-PS.cls July 16, 2012 15:0 iv Table of Contents Section Page ET 300 Responsibilities to Clients ................................... 2947 301—Confidential Client Information Rule 301—Confidential client information Interpretations under Rule 301— Confidential Client Information 302—Contingent Fees Rule 302—Contingent fees Interpretation under Rule 302—Contingent Fees 391—Ethics Rulings on Responsibilities to Clients ET 400 Responsibilities to Colleagues ............................... 2961 ET 500 Other Responsibilities and Practices ......................... 2963 501—Acts Discreditable Rule 501—Acts discreditable Interpretations under Rule 501—Acts Discreditable 502—Advertising and Other Forms of Solicitation Rule 502—Advertising and other forms of solicitation Interpretations under Rule 502—Advertising and Other Forms of Solicitation 503—Commissions and Referral Fees Rule 503—Commissions and referral fees Interpretation under Rule 503—Commissions and Referral Fees 504—[Deleted] 505—Form of Organization and Name Rule 505—Form of organization and name Interpretations under Rule 505—Form of Organization and Name 591—Ethics Rulings on Other Responsibilities and Practices ET ... Appendixes ................................................ 3003 ET ... Rules Compliance Guide.................................... 3011 ET ... Topical Index ............................................... 3019 BYLAWS BL ... Definitions .................................................. 3033 BL 100 Name and Purpose ......................................... 3035 101—Name and Purpose BL 200 Admission to, and Retention of, Membership and Association............................................. 3039 210—2.1 Members 220—2.2 Requirements for Admission to Membership Contents P1: ssn ACPA241p-FM ACPA202-Vol-I-PS.cls July 16, 2012 15:0 Table of Contents v Section Page BL 200 Admission to, and Retention of, Membership and Association—continued 220R—Implementing Resolution Under Section 2.2 Requirements for Admission to Membership 230—2.3 Requirements for Retention of Membership 230R—Implementing Resolutions Under Section 2.3 Requirements for Retention of Membership 240—2.4 Certificate of Membership 250—2.5 Right of Members to Describe Themselves as Such 260—2.6 International Associates 260R—Implementing Resolution Under Section 2.6 International Associates BL 300 Organization and Procedure................................ 3059 310—3.1 General 320—3.2 Membership 320R—Implementing Resolution Under Section 3.2 Membership 330—3.3 Council 340—3.4 Board of Directors 340R—Implementing Resolution Under Section 3.4 Board of Directors 350—3.5 Officers Elected by Council 350R—Implementing Resolution Under Section 3.5 Officers Elected by Council 360—3.6 Committees 360R—Implementing Resolutions Under Section 3.6 Committees BL 400 Financial Management and Controls ........................ 3083 401—Financial Management and Controls 401R—Implementing Resolution Under Article 4 Financial Management and Controls 410—4.1 Audit 420—4.2 Committee on Audit 430—4.3 Execution of Instruments on Behalf of the Institute 440—4.4 Indemnification 450—4.5 Dues 460—4.6 Fiscal Year 460R—Implementing Resolution Under Section 4.6 Fiscal Year Contents P1: ssn ACPA241p-FM ACPA202-Vol-I-PS.cls July 16, 2012 15:0 vi Table of Contents Section Page BL 500 Meetings of the Institute and the Council..................... 3103 501—Meetings of the Institute and the Council 510—5.1 Meetings of the Institute 520—5.2 Meetings of Council 530—5.3 General Provisions Governing Meetings BL 600 Election of Council, Board of Directors, and Officers of the Institute........................................... 3113 601—Election of Council, Board of Directors, and Officers of the Institute 610—6.1 Members of Council Directly Elected by Members of the Institute 610R—Implementing Resolution Under Section 6.1 Members of Council Directly Elected by Members of the Institute 620—6.2 Selection of Members of Council to Represent State Societies 630—6.3 Election of Members-at-Large of Council, Board of Directors, Chairman of the Board, and Vice Chairman of the Board 640—6.4 Forfeiture of Office for Nonattendance 650—6.5 Vacancies 650R—Implementing Resolution Under Section 6.5 Vacancies 660—6.6 Election Meeting of Council 670—6.7 Term Limit BL 700 Termination of Membership and Disciplinary Sanctions ...... 3137 701—Termination of Membership and Disciplinary Sanctions 710—7.1 Resignation of Membership 710R—Implementing Resolution Under Section 7.1 Resignation of Membership 720—7.2 Termination of Membership for Nonpayment of Financial Obligation or for Failure to Comply With Membership-Retention Requirements 720R—Implementing Resolution Under Section 7.2 Termination of Membership for Nonpayment of Financial Obligation or for Failure to Comply With Membership-Retention Requirements 730—7.3 Disciplinary Action Without a Hearing Contents P1: ssn ACPA241p-FM ACPA202-Vol-I-PS.cls July 16, 2012 15:0 Table of Contents vii Section Page BL 700 Termination of Membership and Disciplinary Sanctions—continued 730R—Implementing Resolution Under Section 7.3 Disciplinary Action Without a Hearing 740—7.4 Disciplining of Member by Trial Board 740R—Implementing Resolution Under Section 7.4 Disciplining of Member by Trial Board 750—7.5 Reinstatement 750R—Implementing Resolution Under Section 7.5 Reinstatement 760—7.6 Publication of Disciplinary Action 760R—Implementing Resolution Under Section 7.6 Publication of Disciplinary Action 770—7.7 Disciplinary Sections Not to Be Applied Retroactively BL 800 Amendments ............................................... 3169 801—Amendments 810—8.1 Proposals to Amend the Bylaws 820—8.2 Proposals to Amend the Code of Professional Conduct 830—8.3 Submission to Council via Board of Directors 840—8.4 Submission to Membership by Mail Ballot BL 900 General .................................................... 3181 911—AICPA Mission Statement 921—A Description of the Professional Practice of Certified Public Accountants BL ... Topical Index ............................................... 3187 Contents P1: PjU ACPA202-p4269-4385 ACPA202-Vol-II-PS.cls July 15, 2012 15:13 2810 1 HOW TO USE THIS VOLUME Scope of This Volume… This volume, which is a reprint of the Code of Professional Conduct and Bylaws sections of volume 2 of the paperback edition of AICPA Professional Standards, contains Principles of Professional Conduct, Rules of Conduct, Interpretations of Rules of Conduct, and Ethics Rulings, as well as the AICPA Bylaws and related Implementing Resolutions of Council. How This Volume Is Arranged… The contents of this volume are arranged as follows: Code of Professional Conduct Introduction Principles of Professional Conduct Rules: Applicability and Definitions Independence, Integrity, and Objectivity General Standards—Accounting Principles Responsibilities to Clients Responsibilities to Colleagues Other Responsibilities and Practices Appendixes Rules Compliance Guide Bylaws Definitions Name and Purpose Admission to, and Retention of, Membership and Association Organization and Procedure