The frenzy and anticipation of the presidential election is now behind us. Hundreds of millions of people now look to one man to change history and reverse the economic turmoil eroding U.S. markets and threatening global supply and demand. Perhaps this is the ideal point in time for practitioners to reexamine the very core of their own business and professional ethics and get “back to basics.”

It seems too many times CPAs become entangled in the AICPA and MACPA Code of Professional Conduct and strive to understand the reasoning and practicality of the changes to the Code. Since 2004, the ethics code sections dealing with independence, integrity and acts discreditable to the profession have become more precise and much more descriptive. This is the result of not only the business community’s increased expectations and dependence on CPAs, but also because of the expanding interaction of practitioners in the global economy and not just the “local economy.” Perhaps now is the time for practitioners to stop and review the fundamental cornerstones that provided the basis for our expanded code of professional conduct.

The four general ethics standards found in ET Section 201 of the Code of Professional Conduct form the essence of the ethical guidelines in the practice of accounting. Consider the basic elements of these general standards:

1. Professional Competence
2. Due Professional Care
3. Planning and Supervision
4. Sufficient Relevant Data

If CPAs can adhere to these four basic standards, the framework of their practice structure will be a strong foundation for the international ethics standards that will soon be upon us.

The core of a successful accounting practice is not only your client base; it is your ability to apply basic ethical standards and deal with the coming practice changes that we can expect in 2009 and beyond.
 

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