AUD exam skill

How to apply the AICPA Code of Professional Conduct

Choose the member category, locate the applicable Code part, test direct rules, and use the correct conceptual framework on AUD.

The decision that earns the point

Identify the engagement facts and governing framework

The AICPA Code first asks what role the member occupies. Part 1 applies to members in public practice, Part 2 to members in business, and Part 3 to other members. After selecting the part, apply any direct rule or interpretation, then use that part's conceptual framework only when the Code has not already prohibited or resolved the relationship or conduct.

Exam use

AUD can test which Code part applies, integrity and objectivity, confidential client or employer information, acts discreditable, pressure to breach the rules, conflicts of interest, and when an independence analysis belongs to a member in public practice rather than a member-in-business fact pattern.

Check the official exam scope

Your scratch-paper plan

Solve it in three moves

  1. 1

    Classify the member's role

    Choose public practice, business, or other member from the facts before searching for the applicable rule and conceptual framework.

    AICPA Code of Professional Conduct public PDF
  2. 2

    Apply explicit requirements before safeguards

    A direct prohibition, required action, or interpretation controls before a threats-and-safeguards analysis can be considered.

    AICPA Code of Professional Conduct public PDF
  3. 3

    Document pressure, response, and escalation

    Identify the threat to compliance, evaluate its significance, apply permitted safeguards, and follow the applicable escalation or disassociation steps if the threat is not reduced to an acceptable level.

    AICPA Code of Professional Conduct public PDF

Worked problem

Work the facts before choosing the answer

A CPA serving as controller is told by the chief financial officer to hold a valid December vendor invoice until January so the company can meet its annual earnings target. The CPA does not provide public accounting services to the employer.

CPAPass exam analysis using the stated assumptions

Show the work

The CPA is a member in business, so Part 2 governs. Deliberately delaying the expense conflicts with integrity and objectivity. The CPA explains the issue, refuses to record a knowingly misleading result, follows the organization's escalation process, and considers further action if pressure remains unresolved.

Rule source: AICPA Code of Professional Conduct public PDF

Answer

The answer is not an auditor-independence conclusion. It is a member-in-business ethics response under the applicable Code part, including escalation and possible disassociation from misleading information if safeguards do not resolve the threat.

Rule source: AICPA Code of Professional Conduct public PDF

Do it now

Test the same decision with a fresh question

Start with free AUD practice. Create an account only when you want the 5-day no-card CPAPass trial and continued section practice.

The trap and the repair

Common trap

Applying the public-practice independence conceptual framework to every CPA fact pattern skips the member-category decision and can invoke rules that do not answer the conduct presented.

Repair

Write the member category and Code part at the top of the fact pattern, then test the named rule before considering threats and safeguards.

Authority and scope boundary

The AICPA Code controls member conduct under its stated applicability provisions, including the member-in-business illustration and AICPA independence analysis for a nonissuer attest engagement. SEC and PCAOB independence requirements can impose additional or more restrictive rules on issuer auditors, but they do not turn a controller's employer-pressure problem into an issuer audit question. This page links to independence rather than reproducing that separate owner.

2026 Uniform CPA Examination Blueprints and AICPA Code of Professional Conduct public PDF were reviewed on 2026-08-14. Check a newer authority when the effective date or facts change.

Code applicability map

The member's role chooses the rulebook lane

The same pressure or relationship can produce a different Code analysis depending on whether the member is in public practice, in business, or acting in another capacity.

Member factCode laneFirst exam questionAuthority
Provides professional services in a firmPart 1: Members in Public PracticeDoes a direct public-practice rule or independence interpretation apply?AICPA Code of Professional Conduct public PDF
Works as controller, CFO, or staff accountantPart 2: Members in BusinessDoes employer pressure threaten integrity, objectivity, or truthful information?AICPA Code of Professional Conduct public PDF
Member not in public practice or business for the factsPart 3: Other MembersWhich generally applicable conduct requirement governs the member?AICPA Code of Professional Conduct public PDF
Issuer audit relationship or serviceAICPA Code plus applicable SEC and PCAOB overlaysIs there a direct issuer prohibition before any safeguards analysis?AICPA Code of Professional Conduct resources

After a miss

Repair a Code-category miss

  1. 1

    Circle the member's job and relationship, then write Part 1, Part 2, or Part 3 before naming an ethics principle.

  2. 2

    Rewrite the controller illustration so the CPA is instead the external audit manager and list which independence questions become relevant.

  3. 3

    Complete one fresh AUD ethics question and state category, direct rule, threat, safeguard availability, and next action in that order.

Your exam workflow

  1. Step 1Identify the requirementChoose public practice, business, or other member from the facts before searching for the applicable rule and conceptual framework.AICPA Code of Professional Conduct public PDF
  2. Step 2Classify the factsA direct prohibition, required action, or interpretation controls before a threats-and-safeguards analysis can be considered.AICPA Code of Professional Conduct public PDF
  3. Step 3Apply the authorityIdentify the threat to compliance, evaluate its significance, apply permitted safeguards, and follow the applicable escalation or disassociation steps if the threat is not reduced to an acceptable level.AICPA Code of Professional Conduct public PDF
  4. Step 4Check the outputThe answer is not an auditor-independence conclusion. It is a member-in-business ethics response under the applicable Code part, including escalation and possible disassociation from misleading information if safeguards do not resolve the threat.AICPA Code of Professional Conduct public PDF

Quick questions

What is the key rule?

The AICPA Code first asks what role the member occupies. Part 1 applies to members in public practice, Part 2 to members in business, and Part 3 to other members. After selecting the part, apply any direct rule or interpretation, then use that part's conceptual framework only when the Code has not already prohibited or resolved the relationship or conduct.

How can this topic be tested on the CPA Exam?

AUD can test which Code part applies, integrity and objectivity, confidential client or employer information, acts discreditable, pressure to breach the rules, conflicts of interest, and when an independence analysis belongs to a member in public practice rather than a member-in-business fact pattern.

What mistake most often changes the result?

Applying the public-practice independence conceptual framework to every CPA fact pattern skips the member-category decision and can invoke rules that do not answer the conduct presented. Write the member category and Code part at the top of the fact pattern, then test the named rule before considering threats and safeguards.

Where should I practice the decision?

After the worked example, open the AUD free-practice link and work a fresh question that tests the same decision. If the miss depends on Audit independence threats and prohibitions, review that handoff before trying another set.

Sources behind the rule