Code of Professional Conduct and Bylaws

1 As of June 1, 2013 code of Professional Conduct and Bylaws Reprinted from AICPA Professional | of Professional Conduct and Bylaws As of June 1, 20132013 code of Conduct 19/5/2013 11:11:03 AM10794-355As of June 1, 2013 code of Professional Conduct and Bylaws Reprinted from AICPA Professional StandardsCode of Professional Conduct and Bylaws (as of June 1, 2013) is reprinted from AICPA Professional 2013 byAmerican Institute of Certified Public Accountants, 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 with your request. Otherwise, requests should be written and mailed to the Permissions Department, AICPA, 220 Leigh Farm Road, Durham, NC 2 3 4 5 6 7 8 9 0 PE 1 9 8 7 6 5 4 3 ISBN: 978-1-94023-516-5P1: 16, 201215:0 Table of ContentsSectionPageCODE OF Professional of Professional Conduct Introduction.

2 2815ET 50 Principles of Professional Preamble52 Article I Responsibilities53 Article II The Public Interest54 Article III Integrity55 Article IV Objectivity and Independence56 Article V Due Care57 Article VI Scope and Nature of ServicesET 90 Rules: Applicability and Applicability92 DefinitionsET 100 Independence, Integrity, and Conceptual Framework for AICPA IndependenceStandards101 IndependenceRule 101 IndependenceInterpretations Under Rule 101 Independence102 Integrity and ObjectivityRule 102 Integrity and ObjectivityInterpretations Under Rule 102 Integrity andObjectivity191 Ethics Rulings on Independence, Integrity, andObjectivityET 200 general Standards Accounting general StandardsRule 201 general standardsInterpretations Under Rule 201 general Standards202 Compliance With StandardsRule 202 Compliance with standardsInterpretation under Rule 202 Compliance With Standards203 Accounting PrinciplesRule 203 Accounting PrinciplesInterpretations under Rule 203 Accounting Principles291 Ethics Rulings on general and Technical How to Use This 1.

3 IiiP1: 16, 201215:0 Table of ContentsSectionPageET 300 Responsibilities to Confidential Client InformationRule 301 Confidential client informationInterpretations under Rule 301 Confidential Client Information302 Contingent FeesRule 302 Contingent feesInterpretation under Rule 302 Contingent Fees391 Ethics Rulings on Responsibilities to ClientsET 400 Responsibilities to 500 Other Responsibilities and Acts DiscreditableRule 501 Acts discreditableInterpretations under Rule 501 Acts Discreditable502 Advertising and Other Forms of SolicitationRule 502 Advertising and other forms ofsolicitationInterpretations under Rule 502 Advertising andOther Forms of Solicitation503 Commissions and Referral FeesRule 503 Commissions and referral feesInterpretation under Rule 503 Commissionsand Referral Fees504 [Deleted]505 Form of Organization and NameRule 505 Form of organization and nameInterpretations under Rule 505 Form ofOrganization and Name591 Ethics Rulings on Other Responsibilities and Compliance 100 Name and Name and PurposeBL 200 Admission to, and Retention of, Membership Members220 Requirements for Admission to MembershipContentsiv30033011P1: 16, 201215.

4 0 Table of ContentsSectionPageBL 200 Admission to, and Retention of, Membership andAssociation continued220R Implementing resolution Under Section for Admission to Membership230 Requirements for Retention of Membership230R Implementing Resolutions Under Section for Retention of Membership240 Certificate of Membership250 Right of Members to Describe Themselves as Such260 International Associates260R Implementing resolution Under Section AssociatesBL 300 Organization and General320 Membership320R Implementing resolution Under Section Council340 Board of Directors340R Implementing resolution Under Section of Directors350 Officers Elected by Council350R Implementing resolution Under Section Elected by Council360 Committees360R Implementing Resolutions Under Section 400 Financial Management and Financial Management and Controls401R Implementing resolution

5 Under Article 4 Financial Management and Controls410 Audit420 Committee on Audit430 Execution of Instruments on Behalf of the Institute440 Indemnification450 Dues460 Fiscal Year460R Implementing resolution Under Section YearContents vP1: 16, 201215:0 Table of ContentsSectionPageBL 500 Meetings of the Institute and the Meetings of the Institute and the Council510 Meetings of the Institute520 Meetings of Council530 general Provisions Governing MeetingsBL 600 Election of Council, Board of Directors, and Officersof the Election of Council, Board of Directors, andOfficers of the Institute610 Members of Council Directly Elected by Membersof the Institute610R Implementing resolution Under Section of Council Directly Elected by Membersof the Institute620 Selection of Members of Council to RepresentState Societies630 Election of Members-at-Large of Council, Board ofDirectors, Chairman of the Board.

6 And ViceChairman of the Board640 Forfeiture of Office for Nonattendance650 Vacancies650R Implementing resolution Under Section Election meeting of Council670 Term LimitBL 700 Termination of Membership and Disciplinary Termination of Membership and DisciplinarySanctions710 Resignation of Membership710R Implementing resolution Under Section of Membership720 Termination of Membership for Nonpayment ofFinancial Obligation or for Failure to ComplyWith Membership-Retention Requirements720R Implementing resolution Under Section of Membership for Nonpayment ofFinancial Obligation or for Failure to ComplyWith Membership-Retention Requirements730 Disciplinary Action Without a HearingContentsviP1: 16, 201215:0 Table of ContentsSectionPageBL 700 Termination of Membership and DisciplinarySanctions continued730R Implementing resolution Under Section Action Without a Hearing740 Disciplining of Member by Trial Board740R Implementing resolution Under Section of Member by Trial Board750 Reinstatement750R Implementing resolution Under Section Publication of Disciplinary Action760R Implementing resolution Under Section of Disciplinary Action770 Disciplinary Sections Not to Be AppliedRetroactivelyBL Amendments810 Proposals to Amend the Bylaws820 Proposals to Amend the code of ProfessionalConduct830 Submission to Council via Board of Directors840 Submission to Membership by Mail BallotBL AICPA Mission Statement921 A Description of the Professional Practiceof Certified Public viiP1: 15, 201215.

7 1328101 HOW TO USE THIS VOLUMES cope of This 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 This Volume Is 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 Financial Management and Controls Meetings of the Institute and the Council Election of Council, Board of Directors.

8 And Officers of the Institute Termination of Membership and Disciplinary Sanctions Amendments GeneralHow to Use This The arrangement of material in this volume is indicated in the general table of contents at the front of the OF Professional Conduct The Rules of Conduct , Interpretations of Rules of Conduct , and Ethics Rulings related to the same subject have been assembled within the major divisions of the code of Professional Conduct part of the volume. For example, Rule 101 Independence, ET section 101, is followed by the first Ethics Inter-pretation under Rule 101, ET section 101-1, Interpretation of Rule 101. Ethics Rulings for this section appear in ET section 191. A topical index is provided for this division and is identified as ET Topical The Bylaws of the AICPA and the related Implementing Resolutions of Council are assembled within the major divisions by section numbers.

9 For example, BL Section 230, Requirements for Retention of Membership, is followed by BL section 230R, Implementing Resolutions Under Section Requirements for Retention of Membership. In BL section 900, general , the following sections are included: AICPA Mission Statement A Description of the Professional Practice of Certified Public Accountants A topical index is provided for this division and is identified as BL Topical OF PROFESSIONALCONDUCTAs Adopted January 12, 1988, unless otherwise , Applicability, and ComplianceThe code of Professional Conduct of the American Institute of Certified Pub-lic Accountants consists of two sections (1) the Principles and (2) the Principles provide the framework for the Rules, which govern the per-formance of Professional services by members. The Council of the AmericanInstitute of Certified Public Accountants is authorized to designate bodies topromulgate technical standards under the Rules, and the Bylaws require ad-herence to those Rules and code of Professional Conduct was adopted by the membership to pro-vide guidance and rules to all members those in public practice, in industry,in government, and in education in the performance of their Professional with the code of Professional Conduct , as with all standards inan open society, depends primarily on members' understanding and voluntaryactions, secondarily on reinforcement by peers and public opinion, and ulti-mately on disciplinary proceedings, when necessary, against members who failto comply with the GuidanceInterpretations of Rules of Conductconsist of interpretations which havebeen adopted.

10 After exposure to state societies, state boards, practice units andother interested parties, by the Professional ethics division's executive commit-tee to provide guidelines as to the scope and application of the Rules but arenot intended to limit such scope or application. A member who departs fromsuch guidelines shall have the burden of justifying such departure in any disci-plinary existed before the adoption of the Codeof Professional Conduct on January 12, 1988, will remain in effect until furtheraction is deemed necessary by the appropriate senior technical Rulingsconsist of formal rulings made by the Professional ethicsdivision's executive committee after exposure to state societies, state boards,practice units and other interested parties. These rulings summarize the ap-plication of Rules of Conduct and Interpretations to a particular set of factualcircumstances.