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1. Which two codes of ethics did you review for this discussion?

The two codes of ethics I reviewed were the AICPA code of professional conduct for the accounting ethics, as well as the CFA Institute Code of Ethics and Standards of Professional Conduct for finance ethics. The AICPA Code of Professional conduct governs U.S. CPAs and outlines ethics, independence, integrity, competence, and responsibilities to clients and colleagues, and disciplinary enforcement mechanisms (AICPA, 2025). The CFA Institute Code of Ethics and Standards of Professional Conduct, is applicable globally to CFA Institute members and candidates, emphasizes professionalism and integrity of capital markets, duties to clients, employers, conflicts of interest, and more (CFA Institute, n.d.-a).

1. Apply, compare and contrast the two codes of ethics you selected and include information:
   • Which main topics appear in both?

Several main topics appear in both codes, including the requirement to act with integrity and objectivity, the importance of competence and diligence, and the obligation to comply with applicable laws and regulations (Garner, 2025). These codes of conduct serve as vital tools ensuring honesty and fairness when dealing with clients and professional engagements. It requires an individual to maintain professional knowledge to conduct their work with care and professionalism, as well as act in the client's best interest while following applicable laws and regulations (Garner, 2025).

• Which main topics only appear in accounting or finance?

Topics that are unique to the AICPA Code are detailed auditor independence requirements, prohibitions on certain relationships with audit clients, and standards for avoiding "acts discreditable" to the profession (AICPA, 2025). Unique to the CFA Code are specific provisions addressing the integrity of capital markets, such as prohibitions on insider trading, market manipulation, and misuse of material nonpublic information, as well as explicit duties to employers (CFA Institute, n.d.-a).

• To what extent are the codes of ethicssuggested behaviorsor legally binding? Be specific.

In terms of enforceability, both codes are binding on their members, but neither is a law by itself. The AICPA bylaw section 230 explains that the code of professional conduct applies to all individuals that are members of the AICPA and bylaw section 360 and 700 allow the AICPA to enforce the code (AICPA, 2023). This gives them the ability to take disciplinary action when necessary. The CFA Code is mandatory for CFA members and candidates, with violations handled internally by the CFA Institute's Professional Conduct Program, which can impose sanctions such as private reprimand, suspension, or permanent revocation of the right to use the CFA designation (CFA Institute, n.d.-c). Codes of ethics are tools to help guide people to help them determine good and bad decisions, whereas laws are legally binding, and code of ethics are professionally binding (Johnson, 2021). While neither code directly describes criminal penalties, violations that involve illegal activity, such as fraud, misrepresentation of financial statements, or insider trading, can lead to prosecution under federal or state law.

• Are penalties for failure to follow the code of ethics stated in the code?
  • If so, how are they similar? How do they differ?

The codes differ in how they address penalties. The AICPA Code does not explicitly state fines or imprisonment, instead it outlines general disciplinary processes, leaving penalties to be administered by the AICPA, state CPA societies, or state licensing boards. The AICPA and state CPA societies have joined together to create a Joint Ethics enforcement program to allow them to enforce codes through a single investigation (AICPA, 2023). The CFA Code specifies its disciplinary options clearly, but does not impose legal penalties (CFA Institute, n.d.-b). The industry related sanctions for CFA's are based on the Rules of Procedures for Professional Conduct (Rule 1.6) which include private reprimand, censure, suspension of membership, suspension of right to use CFA designation, and revocation of membership (CFA Institutes, n.d.-b).

• If not, where would an accountant or financial manager find penalties for violating the codes?

An accountant or financial manager would not typically find criminal or civil penalties written directly in the AIPCA or CFA institutes codes or ethics, because these documents are professional conduct standards rather than legal statutes. Instead, penalties are determined and enforced by regulatory and licensing authorities under applicable laws.

• Which behaviors, if any, could result in going to prison?

In both cases, actual prison sentences would stem from violations of applicable laws rather than the codes themselves. For accountants, criminal exposure could result from fraudulent audits, obstruction of justice, or knowingly certifying false statements (AICPA, 2025). For finance professionals, criminal risk could come from insider trading, securities fraud, or market manipulation (CFA Institute, n.d.-a).

• Are the risks of going to prison for failure to follow the codes of ethics higher for accountants and or financial managers?

There is no higher risk in one profession over another as it is dependent on what violation is committed. Accountants working on public company audits may face greater scrutiny under Sarbanes Oxley, while financial managers in investment roles may have heightened risk in areas like insider trading (Sarbanes Oxley, n.d.). In either profession, when unethical actions align with statutory violations, the probability of criminal prosecution and imprisonment, increases.

• To what extent has your research on professional ethics shifted your planned career focus?

Researching these professional ethics codes has reinforced the importance of ethical conduct in both accounting and finance careers. It underscores that ethics is not just about avoiding legal trouble but about building trust with clients, employers, and the public. I currently work in financial reporting, so these tools set the framework for how to handle the accuracy, transparency, and judgment in preparing and presenting financial information. In financial reporting, credibility is everything as the public relies on these reports to help make decisions. These standards require us to act with integrity, exercise objectivity, and avoid misrepresentation of facts, which are crucial elements when preparing a company's financial statements.

• How has this MSAF degree program influenced your mindset regarding professional ethics?

My MSAF degree program has deepened my understanding of how ethical standards guide decision making and protect the integrity of financial market. It has also made me more aware of the reputational and legal consequences of unethical behavior, and by reinforcing the need to maintain independence, transparency, and competence at all times.