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One of the main rules of American Institute of Certified Public Accountants (AICPA) Code of Professional...

One of the main rules of American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct is for an auditor to remain independent. However, the auditor is paid by the client to preform an auditor of their financial information. Do you think the fact that the client pays the auditor for this service is a violation of the Professional Code of Conduct, why or why not?

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Answer #1

As the main rule of American institue of Certified Public Accountants code of conduct is for an auditor to remain independent, thus by receiving the consideration for discharge of professional services by the auditor to it's client doest not amount to voilation of the professional code of conduct . As the auditor is not substantially interested in the business of the client anyhow, thus he can't be barred to conduct audit of their financial information and charge fees for the same.

Therefore, we conclude it doesnot amount to voilation of professional code of conduct by the auditor.

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