Code of Professional Conduct - Introduction & Preamble

CODE OF PROFESSIONAL CONDUCT OF
THE NEW YORK STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

INTRODUCTION

Composition, Applicability, and Compliance

The Code of Professional Conduct of the New York State Society of Certified Public Accountants (the "Society") consists of two sections - (1) the Principles, and (2) the Rules. The Principles provide the framework for the Rules, which govern the performance of professional services by members. The bylaws require adherence to those Rules.

The Code of Professional Conduct was adopted by the membership of the Society to provide guidance and rules to all members--those in public practice, in industry, in government, and in education--in the performance of their professional responsibilities.

Compliance with the Code of Professional Conduct, as with all standards, depends primarily on members' understanding and voluntary actions, secondarily on reinforcement by peers and public opinion, and ultimately on disciplinary proceedings, when necessary, against members who fail to comply with the Rules.

The Board of Regents of the State of New York, which Board has the authority to revoke the license of a certified public accountant who violates its rules.

Governmental agencies which regulate the client's business or use the member's attestation to evaluate the client's compliance with applicable laws and related regulations and which may have established their own rules of conduct on the part of persons practicing before them.

Professional accounting organizations in which Society members may also hold membership (such as the American Institute of Certified Public Accountants or other state societies) or be registered to practice in other states, and such organizations or applicable state boards of accountancy may have established their own rules of professional conduct to which the member may also be subject.

Other Guidance

Interpretations of Rules of Conduct consist of interpretations which have been adopted to provide guidelines as to the scope and application of the Rules. A member who departs from such guidelines shall have the burden of justifying such departure in any disciplinary investigation. The effective date of the Interpretations appearing in this printing is March 25, 1992 as authorized by the Board of Directors. Publication of subsequent Interpretations in a Society publication which is sent to all members constitutes notice to members. Hence, the publication date of the notice, unless a later date is specifically indicated, constitutes the effective date of the Interpretation. The Professional Ethics Committee will take into consideration the time that would have been reasonable for the member to comply with the Interpretations.

Preamble

Membership in the New York State Society of Certified Public Accountants is voluntary. By accepting membership, a certified public accountant assumes an obligation of self-discipline above and beyond the requirements of laws and regulations.

These Principles of the Code of Professional Conduct of the New York State Society of Certified Public Accountants express the profession's recognition of its responsibilities to the public, to clients, and to colleagues. They guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The Principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage.