Content area
Full text
Institute's efforts focus on codifying and aligning rules with international standards.
Sharp increases in the number of multinational audits being performed by U.S. accounting firms means that more CPAs are performing services under the International Federation of Accountants (IFAC) audit and attest standards. Although auditors must comply with the specific standards adopted in each jurisdiction, familiarity with IFAC's International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants (IESBA Code) in addition to the AICPA Code of Professional Conduct (AICPA Code) is a critical first step. When specifications differ, members should comply with the more restrictive of the applicable standards.
This article compares the AICPA and IESBA codes and highlights the AICPA's efforts to codify the AICPA ethics standards and align them with the international standards.
COMPARING THE AICPA CODE TO THE GLOBAL STANDARD
The IESBA Code sets the global standard for the accountancy profession. The Code, available at tinyurl.com/372k2wg, was updated and revised in July 2009. The revisions clarified the requirements for all professional accountants and significantly strengthened the independence requirements. The new code is effective Jan. 1, 2011, with early adoption permitted. Several transitional provisions have been incorporated to allow professionals and firms lime to implement the more stringeni standards.
More similar than different. The IESBA and AICPA codes are more similar than different although some differences are significant. Though this article will focus mainly on the differences, in many cases, applying the codes to the same fact pattern will yield similar results. Also, some differences reflect formatting approaches and drafting conventions. For example, the IESBA Code is divided into three parts: Part A applies to all professional accountants; Part B, only to persons in public accounting; and Pan C, to persons in business, in other words, everyone who is not in public practice. The AICPA does not apportion its principles and rules in this manner. Other differences are more substantive.
As for similarities, both codes address areas such as independence, due care, confidentiality and the truthful reporting of information. The principles underlying each code are also similar except that the IESBA addresses confidentiality and marketing as principles (the latter under professional behavior), applicable to all professionals, whereas the AICPA Code includes these as rules applicable to members in...