New York: Professional Ethics for New York CPAs (Course Id 854)

Regulatory Ethics - Regulatory Ethics for Course Id 854

This 4-hour course is designed to meet the 4-hour Ethics CPE requirement for New York CPAs.  It provides an overview of ethical thought along with the core values of the CPA profession and the application of these values to ethical reasoning.  Board of Regents Rules found in Title 8 of the New York Codes, Rules & Regulations, Chapter 1, Part 29.1 and 29.10 are covered in detail in the course.  Certain administrative rules found in Title 8, Chapter 2, Part 70 and Title 8 of the New York Code, Article 149, Sections 7400-7410 are reviewed.  The AICPA Code of Professional Conduct, as adopted by the New York State CPA Society is also covered in detail.  Case studies are utilized throughout the course to emphasize material.

NASBA QAS - Text - NASBA Registry - 854

Course Learning Objectives

• Recognize ethics from an overall and professional perspective
• Recognize the ethical standards contained in the New York Board of Regents rules
• Recognize the ethical standards contained in the AICPA Code of Professional Conduct

Chapter 1 - Ethics and Professional Conduct for New York 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

Public Expectations of the CPA’s Responsibility

Enron and Arthur Andersen

Motivations of Ethical Lapses

Review Question

The Role of the Office of the Professions in New York

Enforcement of Rules on Ethics

The New York State Rules on Ethics – Rules of the Board of Regents

Retention and Maintenance of Work Papers

Competency Requirements for Attest and Compilation

Failure to Maintain an Active Registration

Reportable Events

Commission and Referral Fees

Comparison of NYS Laws, Rules and Regulations Concerning Commissions and Referral Fees to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Contingent Fees

Comparison of NYS Laws, Rules and Regulations Concerning Contingent Fees to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Independence

Comparison of NYS Laws, Rules and Regulations Concerning Independence to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Advertising

Comparison of NYS Laws, Rules and Regulations Concerning Advertising to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Retention of Client Work Papers

Comparison of NYS Laws, Rules and Regulations Concerning Retention of Client Work Papers to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Confidential Information

Comparison of NYS Laws, Rules and Regulations Concerning confidentiality to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Income Sharing

Other Unprofessional Conduct in the Practice of Public Accountancy

Failures in expressing an opinion on financial statements

Comparison of NYS Laws, Rules and Regulations Regarding Failures in Expressing an Opinion on Financial Statements to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Use of Firm Name

Comparison of NYS Laws, Rules and Regulations Regarding Use of Firm Name to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Opinion and Examination Required

Comparison of NYS Laws, Rules and Regulations Regarding Opinion and Examination to the AICPA Code of Professional Conduct (adopted by the NYSCPAS)

Admission of Guilt, Suspension, Failure to meet Federal Standards

Other Applicable New York Regulatory Requirements – New York State Education Law

Firm Registration

Continuing Professional Education

Mandatory Peer Review

Case Studies

Bernard Madoff Investment Securities LLC – Failures in Expressing an Opinion on Financial Statements

A Little Extra Income – Contingent Fees

Audit Experts - Advertising and Audit Requirements

Adjusting Journal Entries - Work Paper Retention

Review Questions

The New York State CPA Society Rules on Ethics

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

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

Joint Ethics Enforcement Program (JEEP)

Overview

Review Question

Appendix

Regulations of the Commissioner, Part 70

New York Code, Article 149, Sections 7400-7410

Rules of the Board of Regents, Part 29.1

Rules of the Board of Regents, Part 29.10

Glossary