Restructuring the Code of Professional Ethics: A Review of the Anderson Committee Report and its Implications

In its report, the Special Committee on Standards of Professional Conduct for Certified Public Accountants (the Anderson Committee) recommends sweeping changes in certain areas of the Code of Professional Ethics. Some of these changes will significantly affect many certified public accountants, especially those not in public practice. The Anderson Committee sought to provide a Code that is more relevant and responsive to the public's concerns by providing the following: 1. ethical guidance, 2. broad positive standards, 3. specific behavioral rules, 4. proactive monitoring, 5. broader rules application, and 6. guidance on the changing environment. The restructured Code consists of 2 parts. The Standards of Professional Conduct are designed to be positively stated and goal-oriented, whereas the Rules of Performance and Behavior are a reworking of the current Rules of Conduct.