- Competency 1: Apply the standards and professional requirements that are established for audit, attestation, and other services performed by CPAs, including the role of standard-setting bodies within the United States and those bodies with the authority to promulgate international standards.
- Competency 2: Identify situations that might be unethical or a violation of professional standards to determine the appropriate action.
- Competency 3: Apply an appropriate level of professional skepticism and judgment in the performance of work.
Professional code standards are established by AICPA; however, for professionals associated with publicly traded companies, there is another level of oversight. The U.S. Securities and Exchange Commission (SEC) regulates and enforces professional standards in order to protect investors. Violations of the professional standards can lead to legal proceedings.
Go to the Accounting and Auditing Enforcement Releases section of the U.S. Securities and Exchange Commission Web site, linked in the Resources. Select one release from each of the three most recent quarters.
For each release:
- Identify the parties involved and the date of action.
- Summarize the violations, findings, resolution, and consequences.
- Discuss how the actions violate the AICPA Professional Code of Conduct.
- Written communication: Must be free of errors that detract from the overall message.
- Resources and citations: Format according to APA guidelines.
- Required page count: 5–7 pages, not including the title and reference pages.
- Required number of references: A minimum of three references.
- Font and font size: Times New Roman, 12 point.