The AICPA Code of Professional Conduct determines how CPA members should behave professionally, morally, ethically to promote public confidence in the individual. The Code of Professional Conduct also provides guidance on the rules to be followed and helps create integrity. Any violation of the Code of conduct has a severe repercussion, including the revocation of the CPA license by the state board of accountancy. Therefore it is our responsibility as the CPA to clearly understand and implement the Code of Professional Conduct that regulates our works and how we behave in workplaces. If we violate the Code, we tend to compromise our integrity and reduce the trust of the users of our products, and we may face the consequences that come with the violation of the Code.
I believe that the acceptance of the commission by MS. Schultz would violate the AICPA code of professional conduct. This is because the CPA member was awarded the commission for recommending an audit client who purchased computers from the company. It is against the AICPA code for any of the CPA members to recommend or refer any product or service to our audit clients. According to Rule 503—Commissions and referral fees, "A member in public practice shall not for a commission recommend or refer to a client any product or service, or for a commission recommend or refer any product or service to be supplied by a client, or receive a commission, when the member or the member's firm also performs for that client" (Allen and Ng, 1997).
Delegate your assignment to our experts and they will do the rest.
The AMZ Computer Corporation rewarded MS. Schultz because the company felt indebted to MS. Schultz for the recommendation and the client's huge purchase. This is why the Code prohibits us, the CPA members, from recommending our clients, as it may lead to actions against the Code, which may include bribing and fraud.
References
Allen, P. W., & Ng, C. K. (1997). Financial stake and support for banning trade names, commissions, referral fees, and contingent fees. Accounting Horizons , 11 (1), 1.
