The Impact of AICPA Code on the Book-Keeping Profession: An Evaluation of Formal Accountancy Involvement | Original Article

ABSTRACT:

The professional code of ethics that regulates the practices of CPAs is the responsibility of the American Institute of Certified Public Accountants (AICPA). It updated the Code in 1988, but the new Code remains uncertain or ambiguous on a wide range of issues. Such concerns are evaluated in the light of the stated dedication of the professional to the public good, a commitment that is explored in the new Code at length. This study analyses the impact of AICPA on the Book-keeping Profession. For this reason, this study focuses on the involvement of Formal accounting in ensuring the protection of accounting professionals under the Code of Professional Conduct (CPC) of the American Institute of Certified Public Accountants (AICPA). In doing this, we review certain conditions placed by the AICPA under its CPC throughout 2010 to 2019 to quantify the level to which the disclosure of breaches to the AICPA by a state board is related to its complete, limited, or unacceptability of the CPC of the AICPA. the Finding of the study indicates that broad adoption of the CPC of the AICPA does not lead to higher involvement of Formal accounting in reporting breaches Indeed, the study shows that most breaches are reported by government bodies that partly embrace the CPC of the AICPA. The study also demonstrates the uncertainty of the role of the state board in tracking accounting professionals' misconduct and includes recommendations for improved monitoring.