Exposure Drafts, Comment Letters, and Statements of Position
Files
Description
The Committee recognizes that specific threats to meeting the objectives of the fundamental principles may arise when providing professional services to clients and employers. Because it is impossible to address in the Code every situation that creates such threats and specify the appropriate safeguards to mitigate or eliminate those threats, the proposed Framework provides guidance to members when faced with making decisions on ethical matters that are not explicitly addressed by the Code. Under no circumstances, however, may the proposed Framework be used to justify noncompliance with the prohibitions or requirements contained in the rules, interpretations, and rulings in the Code. In cases where a member identifies a threat that is not clearly insignificant (that is, it is more than trivial and inconsequential), the member is required to apply safeguards to eliminate the threat or reduce it to an acceptable level. If a threat cannot be sufficiently mitigated through the application of safeguards, or if a member is unable to implement appropriate safeguards, the member should decline or discontinue the specific professional service. Because the nature of the threats and safeguards may differ for members in public practice and members not in public practice, the proposed Framework provides specific examples relevant to members in public practice and members who are not in public practice. In addition, the proposed Framework contains guidance on ethical conflict resolution that is relevant to all members.
Publication Date
2007
Relational Format
Book
Keywords
Accountants -- Professional ethics -- Standards -- United States
Disciplines
Accounting | Taxation
Recommended Citation
American Institute of Certified Public Accountants. Professional Ethics Executive Committee, "Proposal of Professional Ethics Division: Proposed interpretation 102-7, other considerations: meeting the objectives of the fundamental principles, and proposed framework for meeting the objectives of the fundamental principles; Proposed interpretation 102-7, other considerations: meeting the objectives of the fundamental principles, and proposed framework for meeting the objectives of the fundamental principles, May 15, 2007; Exposure draft (American Institute of Certified Public Accountants), 2007, May 15" (2007). Exposure Drafts, Comment Letters, and Statements of Position. 333.
https://egrove.olemiss.edu/aicpa_sop/333
Comments
Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.