American Institute of Certified Public Accountants (AICPA) Practice Exam

What is the purpose of the code of ethics?

1. To limit professional opportunities

2. To serve as a strict set of rules

3. To guide professional decision-making

4. To enhance competition among professionals

The correct answer is: To guide professional decision-making

The purpose of the code of ethics is to guide professional decision-making. This framework helps professionals navigate complex situations by providing principles and standards that inform their choices and behaviors. By offering a reference for ethical considerations, the code empowers individuals to act with integrity, accountability, and transparency in their professional roles. In addition to setting ethical expectations, the code serves as a foundational document that promotes trust between professionals and the public. It encourages adherence to high standards of conduct, which ultimately supports the reputation and credibility of the profession. The other choices do not reflect the primary intent of the code of ethics. While some may see it as a strict set of rules, its primary goal is to encourage thoughtful decision-making rather than limiting opportunities or enhancing competition. Overall, the code of ethics serves to promote an ethical culture within the profession, fostering an environment where professionals can make informed and principled choices.