Follow the code: an update on the AIC PA's revised code of professional conduct.

• Position: American Institute of Certified Public Accountants

Ghallenging D.H. Lawrence's proposition that ethics does not. change with the calendar. the AICPA's revised Code or Professional Conduct (Code) will become effective Dec. 31. A year later. the Clonceptual Framework for AICPA Independence Standards will be supplemented with two additional frameworks that extend beyond the current independence rule.

While the AICPA intended to limit significant revisions to the ethics rules, the redrafting resulted in several substantive changes to broaden the Code's scope and improve its understandability.

Organization Matters

The first change is the Code's revised format, which is divided into four primary parts: Preface, Members in Public Practice, Members in Business and Other Members (e.g. retirees or nonworking members).

While this does not alter authoritative rules, it was designed to improve navigation and link guidance to practice areas.

The Preface, applicable to all members, generally explains how to apply the Code, establishes key definitions and identifies Hew and pending codification changes. The three remaining parts are applicable based on a member's respective practice area.

Each pari includes relevant ethics topics, many of which exist within today's Code of Professional Conduct.

Topics are farther broken down into applicable sub-topics (e.g., Subtopic 1.240. Financial Interests, include relevant interpretations e.g.. Interpretation 1.240.010 Ovemew of Financial Interests' and contain the majority of textual guidance.

In addition to these structural changes, the AICPA made two adjustments. First, existing ethics rulings, now in question and answer format, have been redrafted and included as broad interpretations. Second, references to non-authoritative guidance have been referenced within text boxes throughout the Code where relevant to the matter at issue.

The AICPA has codified a mapping document (i.e.. Appendix D to the Code of Professional Conduct) that reconciles the current ET standards to the new Code, and provides an online version of the revised Code, available free to all members at pub.aicpa.org/codeofconduct.

Frameworks for the Future

The most significant change to today's existing guidance organizational matters aside are the AICPA's two new conceptual frameworks:

The Conceptual Framework for Members in Practice of the Public Accounting; and

The Conceptual FrameworkJin Members in Business.

While the Conceptual Framework for AICPA

Independence Standards has existed since 2006...