Which statement best describes the “
Acts Discreditable Rule”?
The rule applies to all AICPA members and relates to conduct that diminishes the accounting profession’s reputation.
Violation of the rule must be disclosed to all of the member’s future clients and employers.
The rule applies primarily to members in public practice who embezzle their client’s money.
A member is not in violation of this rule if the conduct was the result of an overly heavy workload.
Answer..
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The Acts Discreditable Rule:
The Acts Discreditable Rule is a part of the AICPA (American Institute of Certified Public Accountants) Code of Professional Conduct, which outlines ethical standards for members of the accounting profession. This rule specifically addresses behaviors or actions that could bring discredit to the accounting profession.
Explanation:
Given introduction for that.
Incorrect options:
b. Violation of the rule must be disclosed to all of the member’s future clients and employers.
- This statement is not accurate. The Act Discreditable Rule itself doesn’t mandate specific disclosure requirements. However, the consequences of violating the rule could lead to professional consequences, and disclosure might be necessary in certain circumstances, but it’s not a direct requirement of the rule.
c. The rule applies primarily to members in public practice who embezzle their client’s money.
- This statement is too narrow. The Acts Discreditable Rule applies to all AICPA members, not just those in public practice. Additionally, it covers a broader range of behaviors beyond embezzlement.
d. A member is not in violation of this rule if the conduct was the result of an overly heavy workload.
- This statement is not accurate. The rule does not typically provide an exemption based on workload. If a member engages in conduct that diminishes the reputation of the accounting profession, it would still be considered a violation of the Acts Discreditable Rule, regardless of the workload.
Explanation:
Your required solution is here.
Final solution.
The correct option is:
a. The rule applies to all AICPA members and relates to conduct that diminishes the accounting profession’s reputation.
- The Acts Discreditable Rule is a part of the AICPA (American Institute of Certified Public Accountants) Code of Professional Conduct, which sets forth ethical standards for members of the accounting profession.
- The rule applies to all AICPA members, not limited to a specific subgroup or sector within the profession.
- The main focus of the Acts Discreditable Rule is on conduct that could harm or diminish the reputation of the accounting profession as a whole. This can encompass a wide range of behaviors that, if engaged in by a member, may reflect negatively on the integrity and professionalism of the accounting profession.
