CalCPA's Code of Professional Conduct.

• Position: Special section: Code Revisions

Additions marked in blue, deletions struckthrough in red

COMPOSITION, APPLICABILITY AND COMPLIANCE

The Code of Professional Conduct (the "Code of Professional Conduct") of the California Society of Certified Public Accountants ("CalCPA") consists of two sections: (1) Principles, and (2) Rules. The Principles and Rules conform to the Principles and Rules set forth in the Code of Professional Conduct of the American Institute of Certified Public Accountants (the "Institute") and the California State Board of Accountancy. The Principles provide the framework for the Rules, which govern the performance of professional services by members. CalCPA is authorized to designate bodies to promulgate technical standards under the Rules. In the absence of specific designation by CalCPA or another authority, CalCPA authorizes the governing Council of the American Institute of Certified Public Accountants (the "Council") to designate bodies to promulgate technical standards under the Rules. The Bylaws of CalCPA require adherence to those Rules and standards. The Bylaws and the Code of Professional Conduct are enforced pursuant to the terms of the Enforcement Procedures adopted by the Council of CalCPA.

The Code of Professional Conduct was adopted by the membership of CalCPA to provide guidance and rules to all members--those in public practice, industry, government, and education--in the performance of their professional responsibilities.

Compliance with the Code of Professional Conduct, as with all standards in an open society, depends primarily on members' understanding and voluntary actions, secondarily on reinforcement by peers and public opinion, and ultimately on disciplinary proceedings, when necessary, against members who fail to comply with the Rules.

SECTION I. PRINCIPLES PREAMBLE

Membership in CalCPA is voluntary. By accepting membership, a [begin strikethrough]certified public accountant[end strikethrough] member assumes an obligation of self-discipline above and beyond the requirements of laws and regulations.

These Principles of the Code of Professional Conduct of CalCPA express the profession's recognition of its responsibilities to the public, to clients and to colleagues. They guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The Principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage.

ARTICLE I-RESPONSIBILITIES

In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities. As professionals, [begin strikethrough]certified public accountants[end strikethrough] members perform an essential role in society. Consistent with that role, members of CalCPA have responsibilities to all those who use their professional services. Members also have a continuing responsibility to cooperate with each other to improve the art of accounting, maintain the public's confidence and carry out the profession's special responsibilities for self-governance. The collective efforts of all members are required to maintain and enhance the traditions of the profession.

ARTICLE II-THE PUBLIC INTEREST

The public interest principle. Members should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate a commitment to professionalism.

A distinguishing mark of a profession is acceptance of its responsibility to the public. The accounting profession's public consists of clients, credit grantors, governments, employers, investors, the business and financial community and others who rely on the objectivity and integrity of [begin strikethrough]certified public accountants[end strikethrough] members to maintain the orderly functioning of commerce. This reliance imposes a public interest responsibility on [begin strikethrough]certified public accountants[end strikethrough] members. The public interest is defined as the collective well being of the community of people and institutions that the profession serves.

In discharging their professional responsibilities, members may encounter conflicting pressures from [begin strikethrough]among[end strikethrough] each of those groups. In resolving those conflicts, members should act with integrity, guided by the precept that when members fulfill their responsibility to the public, clients' and employers' interests are best served.

Those who rely on [begin strikethrough]certified public accountants[end strikethrough] members expect them to discharge their responsibilities with integrity, objectivity, due professional care and a genuine interest in serving the public. They are expected to provide quality services, enter into fee arrangements and offer a range of services-all in a manner that demonstrates a level of professionalism consistent with these Principles of the Code of Professional Conduct.

All who accept membership in CalCPA commit themselves to honor the public trust. In return for the faith that the public reposes in them, members should seek to continually [begin strikethrough]to[end strikethrough] demonstrate their dedication to professional excellence.

ARTICLE III-INTEGRITY

Integrity principle. To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity.

Integrity is an element of character fundamental to professional recognition...