Full Answer Section

It is possible that the AICPA could have done more to prevent the unethical conduct at Arthur Andersen. For example, the AICPA could have conducted more audits of accounting firms or could have imposed stricter penalties for ethical violations. However, it is also possible that even if the AICPA had done more, the unethical conduct at Arthur Andersen would have still occurred.

Ultimately, the responsibility for ethical conduct lies with each individual CPA. The AICPA can set high standards and enforce them, but it cannot guarantee that all CPAs will always act ethically.

Here are some of the things that the AICPA could have done to prevent the unethical conduct at Arthur Andersen:

• Conduct more audits of accounting firms: The AICPA could have conducted more audits of accounting firms to ensure that they were complying with the Code of Professional Conduct.
• Impose stricter penalties for ethical violations: The AICPA could have imposed stricter penalties for ethical violations, such as suspension or expulsion from the AICPA.
• Create a more ethical culture within the accounting profession: The AICPA could have created a more ethical culture within the accounting profession by emphasizing the importance of ethics in its training programs and by providing resources to help CPAs make ethical decisions.

It is important to note that the AICPA is not the only organization that can help to prevent unethical conduct in the accounting profession. Other organizations, such as the Securities and Exchange Commission (SEC), also play a role in ensuring that accounting firms comply with the law and ethical standards.