American Institute of Certified Public Accountants (AICPA) Practice Exam

In an attest engagement, members can only rely on which of the following regarding independence?

1. AICPA rules of conduct

2. Personal judgment

3. Client preferences

4. Industry standards

The correct answer is: AICPA rules of conduct

In an attest engagement, reliance on the AICPA rules of conduct regarding independence is crucial because these rules provide a standardized framework that governs the ethical behavior and professional responsibilities of certified public accountants. The AICPA rules detail the circumstances under which a CPA can maintain independence and the actions that might impair this independence. Independence is a foundational concept in attest services, as it ensures that the accountant's opinions and reports are objective and unbiased. The AICPA rules clearly delineate situations that could create conflicts of interest or perceptions of bias, guiding members to uphold the integrity of the profession. Personal judgment, while important for ethical decision-making, can vary significantly among individuals and might not align with established standards. Client preferences can often lead to pressures that compromise independence, while industry standards may provide general guidelines but lack the specificity and authority of AICPA rules. Thus, only the AICPA rules of conduct offer the reliable, recognized standards necessary for ensuring independence in attest engagements.