Professional Ethics for CPAs - by Colten Christensen (Course Id 1876)

Regulatory Ethics - Regulatory Ethics for Course Id 1876

CPAs are professionals that are required to make ethical decisions daily when performing their duties. Ethics are moral principles or values that tend to be unique to each individual and are used to shape decisions. Ethical standards are based on ethical principles. All CPAs are required to apply ethical principles to their practice and to the services they provide. This course identifies why it is crucial for all CPAs to practice ethics and to solve ethical dilemmas that they encounter. Part one of this course will identify the need for ethics in the CPA profession and the ethical principles that all CPAs are required to comply with when performing their duties. This course will review ethics rules, regulations, and entities that provide ethics enforcement for CPAs. Part 2 of this course will review the principles of the AICPA’s Code of Professional Conduct. It will identify when independence is considered to be impaired and define discreditable acts.

Note: This course satisfies the 4 (or less) CPE requirement of the following states: AL, AK, AZ, AR*, CA, CO, CT, DC, GA, HI, ID, IL, IN, IA, KS, KY, ME, MD, MA, MT, NE, NV, NH, NM, NC, ND, OK, PA, PR, SD, VT, VI, and WI.

* In addition to this course, Arkansas CPAs are required to completed 1 Hour of Arkansas State Board of Public Accountancy content. This can be accomplished by completing a free, web based course via the Board's website or attending group training taught by a board member, board staff member, or a designee of the Board.

NASBA QAS - Text - NASBA Registry - 1876

Course Learning Objectives

• Identify the different organizations that create and enforce ethical standards.
• Recognize how the Sarbanes Oxley Act imposes auditor independence standards.
• Identify the two areas defined by the AICPA’s Code of Professional Conduct.
• Recognize the principles of the AICPA’s Code of Professional Conduct.
• Identify when independence is considered to be impaired.
• Recognize the AICPA rules for contingency fees and provide at least one example of acts where contingency fees cannot be collected.
• Identify different actions that are considered discreditable acts.

Chapter 1 - Professional Ethics for CPAs

Course Learning Objectives

Ethics Defined

Ethical Principles

What Causes Unethical Behavior?

Differing Ethical Standards

Ethical dilemmas

Help with Ethical Dilemmas

The consequentialist framework

The duty framework

The virtue framework

Need for Ethics in the CPA Profession

Financial Restatements

Professional Ethics

Ethics Rules, Regulations, and Ethics Enforcement for CPAs and Auditors

American Institute of Certified Public Accountants (AICPA)

Securities and Exchange Commission (SEC)

Independence Standards Board

Public Company Accounting Oversight Board

Government Accountability Office (GAO)

Purpose

When and Where to Apply Yellow Book

GAO Ethics, Independence, and Professional Judgment

Ethical Principles

The Public Interest

Integrity

Objectivity

Proper Use of Government Information, Resources, and Positions

Professional Behavior

Overview of Sarbanes Oxley Act

Auditor Restrictions:

Audit Committee:

Officers and Directors:

Disclosure Requirements:

Increased Criminal Penalties and Fines:

Review Questions - Section 1

Code of Professional Conduct

Introduction to AICPA Code of Professional Conduct

Principles of Professional Conduct

Section 102 - Integrity and Objectivity

Section 201 - General Standards

Interpretations under Rule 201 —General Standard.

Section 203 - Accounting Principles

Interpretations under Rule 203

203-1—Departures from established accounting principles.

203-2—Status of FASB, GASB and FASAB interpretations.

203-4—Responsibility of employees for the preparation of financial statements in conformity with GAAP.

Section 301 - Confidential Client Information

.01 Rule 301—Confidential client information.

Interpretations Under Rule 301

.04 301-3—Confidential information and the purchase, sale, or merger of a practice.

Section 302 - Contingent Fees

.01 Rule 302—Contingent fees.

Interpretation under Rule 302

.02 302-1—Contingent fees in tax matters.

Section 501 - Acts Discreditable

.01 Rule 501—Acts discreditable.

.02 501-1—Response to requests by clients and former clients for records.

.03 501-2—Discrimination and harassment in employment practices.

.04 501-3—Failure to follow standards and/or procedures or other requirements in governmental audits.

.05 501-4—Negligence in the preparation of financial statements or records.

.06 501-5—Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies.

.07 501-6—Solicitation or disclosure of CPA examination questions and answers.

.08 501-7—Failure to file tax return or pay tax liability.

.09 501-8—Failure to Follow Requirements of Governmental Bodies, Commissions, or Other Regulatory Agencies on Indemnification and Limitation of Liability Provisions in Connection With Audit and Other Attest Services.

Section 100-1 Conceptual Framework for AICPA Independence Standards

Introduction

Review Questions - Section 2

GAO Yellowbook Independence

Independence Changes

Independence Compared to the AICPA Code of Professional Conduct

Prohibited bookkeeping services

Independence Guidance for Government Audit Organizations

GAGAS Detailed Information

GAGAS Conceptual Framework Approach to Independence

Provision of Non-audit Services to Audited Entities

Consideration of Specific Non-audit Services

Documentation

Glossary