California Non-Regulatory Ethics: Professional Ethics and Conduct for CPAs (Course Id 1020)

Behavioral Ethics - Behavioral Ethics for Course Id 1020

This course satisfies the California non-regulatory Four-hour ethics requirement for all licensees. It covers what ethics are and some of the different approaches to ethics. The course covers much of the AICPA Code of Ethics and many interpretations of the Code, particularly in the independence area.

Also covered are the following topics:
• Professional Standards/Pronouncements and Recent Changes and Additions
• Continuing Education (CE) and CE Reporting Requirements
• Commissions and Contingent Fees
• Common Violations/Complaints
• Recent Relevant Court Decisions.

Ethics of other professions such as attorneys and internal auditors are discussed and compared to the CPA code of ethics. Relevant court cases and the current Enron case are discussed.

NASBA Registry - 1020

Course Learning Objectives:

• To examine the philosophical aspects of ethics (Unit One)
• To understand the “trust” function in our society (Unit One)
• To discuss definitions of terms that are necessary to understand ethics (Unit Two)
• To understand the newer rules of Independence (Unit Two)
• To describe the applicability of the rules (Unit Three)
• To differentiate Independence in Appearance and Fact (Unit Three)
• To examine the CPA’s responsibilities to clients (Unit Three)
• To examine the impact of non-attest services (Unit Four)
• To understand the rules and regulations pertaining to ethical conduct. (Unit Four)
• Examine the role of the attorney in our society (Unit Four)
• Be able to discuss the Internal Auditor’s Code (Unit Four)
• To discuss the impact of various court cases on the profession (Unit Four)

Unit 1
Purpose of the Code of Ethics

• Understand the definition of Ethics.
• Examine the Trust Function in our society.
• Be familiar with the Role of the CPA in our society.
• Understand the purpose of the AICPA Code of Ethics
• Be familiar with the sections of the Code
• Examine Ethics Rulings and Interpretations

Unit 2
Principles of Ethics

• Understand the professional responsibilities of the CPA
• Examine the terms used in the Code
• Understand the need for Integrity, Objectivity, and Independence.
• Be familiar with the SEC Auditor Independence Requirements
• Examine Alternative Practice Structures
• Understand Professional Due Care

Unit 3
Rules of Ethics

• Be able to differentiate Independence in Appearance and Fact
• Understand the role of GAAP
• Examine the use of Confidential Client Information
• Be familiar with the rules concerning Contingent Fees and Commissions
• Understand Advertising by the CPA

Unit 4
Interpretations of the Code of Ethics

• Understand the impact of former employees and family members on Independence.
• Examine the impact of Investment or Management Advisory Services on Independence.
• Be familiar with possible conflicts of interest.
• Understand the role of CPAs as employees

1.  Purpose of the Code of Ethics

2.  Principles of Ethics

3.  Rules of Ethics

4.  Interpretations of the Code of Ethics