Skip to content

This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.

Close
AICPA-CIMA
  • AICPA & CIMA:
  • Home
  • CPE & Learning
  • My Account
Journal of Accountancy
  • TECH & AI
    • All articles
    • Artificial Intelligence (AI)
    • Microsoft Excel
    • Information Security & Privacy

    Latest Stories

    • AI-driven spreadsheet tools — what CPAs need to know
    • Is spending on technology spinning out of control?
    • Using 3 Excel View tools to manage large spreadsheets
  • TAX
    • All articles
    • Corporations
    • Employee benefits
    • Individuals
    • IRS procedure

    Latest Stories

    • Social Security wage base and COLA announced for 2026
    • Congress passes bill requiring IRS to clarify math error notices
    • AICPA seeks IRS guidance on tip, overtime tax deductions for 2025
  • PRACTICE MANAGEMENT
    • All articles
    • Diversity, equity & inclusion
    • Human capital
    • Firm operations
    • Practice growth & client service

    Latest Stories

    • Social Security wage base and COLA announced for 2026
    • Navigating outside investors: Safeguarding ethics and independence in evolving practice structures
    • Congress passes bill requiring IRS to clarify math error notices
  • FINANCIAL REPORTING
    • All articles
    • FASB reporting
    • IFRS
    • Private company reporting
    • SEC compliance and reporting

    Latest Stories

    • SEC accepting Professional Accounting Fellow applications
    • SEC names new chief accountant
    • SEC ends legal defense of its climate rules
  • AUDIT
    • All articles
    • Attestation
    • Audit
    • Compilation and review
    • Peer review
    • Quality Management

    Latest Stories

    • Right-size your quality management documentation for SQMS No. 1
    • PCAOB publishes guidance related to Audit Evidence amendments
    • AICPA unveils new QM resources to help firms meet Dec. 15 deadline
  • MANAGEMENT ACCOUNTING
    • All articles
    • Business planning
    • Human resources
    • Risk management
    • Strategy

    Latest Stories

    • Promotion opportunities abound for CFO hopefuls
    • Business outlook brightens somewhat despite trade, inflation concerns
    • AICPA & CIMA Business Resilience Toolkit — levers for action
  • Home
  • News
  • Magazine
  • Podcast
  • Topics
Advertisement
  1. newsletter
  2. Cpa Insider
CPA INSIDER

How to get answers to your ethics questions

From frequently asked questions to more singular inquiries, here are resources that can help.

By Alex Granados and Chris Baysden
November 23, 2015

Please note: This item is from our archives and was published in 2015. It is provided for historical reference. The content may be out of date and links may no longer function.

Related

December 1, 2014

Applied ethics

June 1, 2014

Ethics made easier: How to use the revised AICPA Code of Professional Conduct

TOPICS

  • Ethics
    • Code of Professional Conduct

Ethics are a cornerstone of the CPA profession. Indeed, part of what makes a CPA special is the adherence to a code of professional ethics designed to safeguard clients and ensure integrity.

But even CPAs who are well-versed in the AICPA Code of Professional Conduct sometimes have questions about how it should be applied. Engagements aren’t paint-by-numbers affairs; sometimes the unexpected happens. At other times, situations arise that a CPA hasn’t had to deal with before. Or sometimes there are conflicting ethical issues involved in an engagement.

Consider these scenarios:

  • A CPA prepares a tax return for a husband and wife. Later, the CPA discovers that the husband and wife have decided to divorce. The husband then asks the CPA not to give the wife copies of the tax returns. Subsequently, the wife asks for a copy of the tax returns. Both the husband and wife are clients—yet they have made conflicting requests. What should the CPA do?
  • A CPA in public practice provides professional services for Client Company X. The CPA is later approached by Client Company Y, who wants the CPA to provide professional services for Client Company Y. But the CPA subsequently finds out that Client Company Y is a prospective buyer of some material assets of Client Company X. There may be a conflict of interest because work done for Client Y could affect Client X. Can the CPA do any work for Client Y? If so, what are the limits?
  • A CPA firm audits the financial statement of an organization. The organization has asked the CPA firm to provide payroll services for the organization. What services may the CPA firm provide for the organization without impairing independence?
  • A CPA performs attestation services for a company whose CEO is John Doe. The CPA, who sells life insurance to individuals as part of his CPA firm’s personal financial planning offerings, finds out that John Doe is interested in buying life insurance. How do rules regarding referral fees or commissions apply when there are two types of engagements for separate but related parties? Also, is there a conflict of interest if the CPA tries to sell John Doe insurance while continuing to perform the attest work?

Though simplified and fictional, these scenarios are inspired by actual ethics-related situations. So how do CPAs get answers to these types of questions?

The AICPA offers a number of resources, starting with the ethics hotline at 888-777-7077. (Questions also can be emailed to the hotline at ethics@aicpa.org).The Institute receives about 3,000 inquiries a year. As the aforementioned scenarios illustrate, the most common questions revolve around independence, confidential client information, record retention, and conflicts of interest. The hotline is open to both AICPA members and nonmembers. However, most of the calls come from members in public practice.

People who call the hotline are automatically sent to a voicemail box where they are asked to leave their name and number. An AICPA technical manager will subsequently return the call.

The AICPA also offers many ethics-related resources on its website. One of the latest is a compilation of Frequently Asked Questions. It covers general topics such as blind trusts, campaign contributions, disclosure of commissions, and pro bono and below-cost fees. Here are examples of some of the questions answered in the FAQ, which was updated in August 2015:

Advertisement

May a member make a political contribution to the campaign of an individual that is associated with an attest client in a key position or holds a financial interest in the attest client that is material and/or enables the individual to exercise significant influence over the attest client without impairing independence or violating any other rule of conduct?

When is a member required to disclose to a client that a commission will be received under the “Commissions and Referral Fees Rule” (AICPA, Professional Standards, ET 1.520.001)?

Would independence be impaired under the under the “Independence Rule” if a member enters into a non-binding letter of intent to sell his or her practice to a purchaser that is not independent with respect to one or more of the member’s attest clients?

Answers to these, and several other popular questions, can be found in the FAQ document. The answers are based on guidance the AICPA Professional Ethics Division staff provided in response to members’ inquiries. The FAQs are not rules, regulations, or statements of the Professional Ethics Executive Committee and, therefore, are not authoritative guidance.

In addition to the hotline and the general topic FAQ, the ethics division also offers FAQs on other topics, white papers, and toolkits. Links to these resources can be found here, and PDF versions of the Code of Professional Conduct as well as the link to the online version are here.

Alex Granados is a freelance writer based in Raleigh, N.C.

Chris Baysden is the senior manager, newsletters, for the AICPA Magazines and Newsletters team. 

Advertisement

latest news

October 24, 2025

Social Security wage base and COLA announced for 2026

October 22, 2025

Congress passes bill requiring IRS to clarify math error notices

October 22, 2025

AICPA seeks IRS guidance on tip, overtime tax deductions for 2025

October 21, 2025

IRS offers relief on car loan interest reporting under H.R. 1

October 20, 2025

STEM designation for accounting has strong support

Advertisement

Most Read

Why accountants need to master the art of reading the room
Using 3 Excel View tools to manage large spreadsheets
IRS furloughs nearly half its workers, closes most operations
Annual inflation adjustments announced for tax year 2026
Paper tax refund checks on the way out as IRS shifts to electronic payments
Advertisement

Podcast

October 23, 2025

Reflecting on AI’s rise in accounting, looking to what comes next

October 16, 2025

AI, succession, the talent pipeline, and defining ‘unapologetic’ ambition

October 8, 2025

Shutdown concerns, the quest for tax guidance, the future of IRS service

Features

AI-powered hacking in accounting: ‘No one is safe’

AI-powered hacking in accounting: ‘No one is safe’

Building a better firm: How to pick the proper technology

Building a better firm: How to pick the proper technology

Why accountants need to master the art of reading the room

Why accountants need to master the art of reading the room

How BI and analytics enhance management accountants’ partnering role

How BI and analytics enhance management accountants’ partnering role

SPONSORED REPORT

Preparing clients for new provisions next tax season

As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.

From The Tax Adviser

September 30, 2025

Current developments in taxation of individuals: Part 1

August 30, 2025

2025 tax software survey

August 30, 2025

Are you doing all you can to keep the cash method for your clients?

July 31, 2025

Current developments in S corporations

MAGAZINE

October 2025

October 2025

September 2025

September 2025

August 2025

August 2025

July 2025

July 2025

June 2025

June 2025

May 2025

May 2025

April 2025

April 2025

March 2025

March 2025

February 2025

February 2025

January 2025

January 2025

December 2024

December 2024

November 2024

November 2024

view all

View All

PUSH NOTIFICATIONS

Learn about important news

This quick guide walks you through the process of enabling and troubleshooting push notifications from the JofA on your computer or phone.

CPA LETTER DAILY EMAIL

Subscribe to the daily CPA Letter

Stay on top of the biggest news affecting the profession every business day. Follow this link to your marketing preferences on aicpa-cima.com to subscribe. If you don't already have an aicpa-cima.com account, create one for free and then navigate to your marketing preferences.

Connect

  • JofA on X
  • JofA on Facebook

HOME

  • News
  • Monthly issues
  • Podcast
  • A&A Focus
  • PFP Digest
  • Academic Update
  • Topics
  • RSS feed
  • Site map

ABOUT

  • Contact us
  • Advertise
  • Submit an article
  • Editorial calendar
  • Privacy policy
  • Terms & conditions

SUBSCRIBE

  • Academic Update
  • CPE Express

AICPA & CIMA SITES

  • AICPA-CIMA.com
  • Global Engagement Center
  • Financial Management (FM)
  • The Tax Adviser
  • AICPA Insights
  • Global Career Hub
AICPA & CIMA

© 2025 Association of International Certified Professional Accountants. All rights reserved.

Reliable. Resourceful. Respected.