General Ethics for CPAs
This course is based on the AICPA Code of Professional Conduct. (Course Id 775)

• Who is this course for?
  This course is intended for CPAs and other professionals needing Continuing Professional Education (CPE) credits, especially those seeking guidance on ethical standards in the accounting profession.

• What is this course about or what problem does this course solve?
  The course provides a structured understanding of ethical thought, the AICPA Code of Professional Conduct, and ethical responsibilities under Treasury Department Circular No. 230, helping CPAs recognize and resolve ethical issues.

• How can the knowledge from this course be used?
  Learners can apply this knowledge to identify ethical behavior, adhere to professional standards, and navigate ethical dilemmas using real-world case studies and established regulatory guidelines.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It is crucial because it reinforces the ethical foundations and responsibilities of CPAs, ensuring compliance with AICPA and IRS ethical standards, which helps protect public trust and uphold the integrity of the profession.

• When is this course relevant or timely?
  This course is always relevant, particularly when ethical standards are under scrutiny or evolving, and it was most recently revised on February 25, 2025, ensuring up-to-date content.

• How is a course like this consumed or used?
  The course is delivered as a NASBA QAS self-study text, completed independently by the participant, with review and final exam questions required for earning CPE credit.

This AICPA code of ethics course provides an overview of ethical thought as well as the core values of the CPA profession and the application of these values to ethical reasoning. The AICPA Code of Professional Conduct is used as a basis for ethical conduct for CPAs and case studies are used to reinforce concepts. Additionally, the ethical requirements of CPA tax practitioners under Treasury Department Circular No. 230 are also covered in the course materials.

NASBA QAS - Text - NASBA Registry - 775

Course Learning Objectives

• Recognize ethical behavior in the context of social and professional groups.
• Describe the AICPA Code of Professional Conduct.
• Describe the requirements of tax practitioners under Treasury Department Circular No. 230.

Chapter 1 - General Ethics for CPAs

Ethics Background

Morals

What is Ethics?

The Relationship of Morals and Ethics

Illustrative Examples of Ethics

Professional Ethics

Legal versus Ethical

Why Should We Study Professional Ethics?

Accounting Ethics

Ethical Core Foundations for CPAs

Review Question

Ethical Reasoning

Case Studies – Threats and Safeguards

Ethical Dilemmas

Case Studies of Ethical Lapses

Enron and Arthur Andersen

The Travel Expense Department

Motivations of Ethical Lapses

The AICPA Code of Professional Conduct

About the Code

Preface

Part 1 – Members in Public Practice

Rule 1.100 Integrity and Objectivity

Case Study – Married Tax Clients Divorcing

1.130 Preparing and Reporting Information

Case Study – Year End Adjustments and Loan Covenants

Case Study – Bernard Madoff Investment Securities LLC

Case Study – Phar-Mor

1.180 – Responding to Noncompliance with Laws and Regulations

1.200 - Independence

Review Questions

Rule 1.300—General Standards Rule

Case Study – Audit Engagement with No Prior Experience

1.310 Compliance with Standards Rule

Case Study – Peer Review Discoveries

1.320 Accounting Principles Rule

1.400.001 Acts Discreditable Rule

1.510.001 — Contingent Fees Rule

1.520.001—Commissions and referral fees Rule

1.600.001 – Advertising and other forms of solicitation

1.700.001 – Confidential client information rule

1.800.001—Form of organization and name rule

Review Questions

Part 2 – Members in Business

2.100.001 – Integrity and Objectivity Rule

2.130.030 Obligation of a Member to His or Her Employer’s External Accountant

2.170.010 – Pressure to Breach the Rules

2.180.010 Responding to Noncompliance With Laws and Regulations

Case Study – Fair Finance

2.300.001 – General standards rule

2.310.001—Compliance with standards rule

2.320.001—Accounting principles rule

Case Study - The Company with Excess Reserves

Case Study - The Company with Undisclosed/Unrecorded Contingencies

2.400.001 Acts Discreditable Rule

2.400.070 Confidential Information from employment or volunteer activities

Part 3 – Other Members

3.400.001 - Acts discreditable rule

3.400.070 Confidential Information from employment or volunteer activities

Review Question

Overview of Treasury Department Circular No. 230

Summary of Key Sections of Circular 230

Who can Practice Before the IRS?

Selected Obligations Under Treasury Circular No. 230

Sanctions for Violations Imposed by Subpart C

Rules for the Conduct of Disciplinary Actions Under Subpart D

Review Questions

Glossary