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Glossary/Fraud and ethics

Objectivity and integrity

Objectivity and integrity are two principles in the AICPA Code. Objectivity is impartiality and freedom from conflicts of interest. Integrity means being honest and candid, without subordinating judgment to others.

CORAA TeamUpdated November 5, 2026

Definition

The Integrity and Objectivity Rule in the AICPA Code requires a member in public practice to maintain objectivity and integrity, be free of conflicts of interest, and not knowingly misrepresent facts or subordinate judgment to others. Objectivity is a state of mind that makes the member impartial and intellectually honest. It applies to all services, including those where independence is not required.

Why it matters in an audit or review

Even where independence is not required, such as in a compilation or tax work, the member must be objective and honest. A conflict of interest, such as advising two parties in a business dispute, calls for disclosure and consent or for declining. The auditor's objectivity underlies the credibility of the opinion. Pressure from a client or partner to accept a weak estimate is an objectivity issue.

Example

Illustrative: a firm prepares a company's tax returns and is also asked to advise the owner personally on buying a competitor, while the company is bidding for the same target. The firm identifies a conflict of interest, discloses it to both parties and asks for written consent. One client objects, so the firm declines the advisory work.

Common mistakes

Thinking objectivity applies only when the firm is independent. It applies to every service the member provides.

Sources

  • AICPA, Code of Professional Conduct, ET 1.100.001, Integrity and Objectivity Rule
  • AICPA, Code of Professional Conduct, ET 1.110.010, Conflicts of Interest
  • AICPA, Code of Professional Conduct, ET Part 0.300, Principles of Professional Conduct

Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error

Standards

AICPA Code ET 1.100.001

Related terms

  • Independence
    Independence for an auditor means independence of mind and independence in appearance. It is required for audits and reviews, and under the AICPA Code it is judged using a conceptual framework.
  • Professional skepticism
    Professional skepticism is an attitude that includes a questioning mind, alertness to conditions that may indicate misstatement, and a critical assessment of audit evidence, kept up throughout the whole engagement.
  • Threats and safeguards
    Threats are circumstances that could compromise compliance with the AICPA Code, and safeguards are actions that reduce them to an acceptable level. If none works, the member declines or stops.
  • Conceptual framework (AICPA Code)
    The conceptual framework is the AICPA Code's three-step approach for ethics and independence: identify threats, evaluate their significance, and apply safeguards, or decline the work if none suffice.

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