• Updates on current code of conduct and regulatory developments (30 - 45 minutes*)
  • Virginia Board of Accountancy (VBOA)
    • Practice without a current license
      • Checking BOA website for license expiration date

  • Understanding Revised Peer Review Standards - AICPA White Paper - www.aicpa.org

  • Alert: International Accounting Standards Board (IASB) recognized by AICPA and SEC approves release of IFRS proposals

  • Firm registration requirements and related peer review
    • VBOA disciplinary process**
    • Ten Myths of Ethics**
    • Handouts of actual VBOA enforcement cases (new cases for 2009)**

  • AICPA Professional Ethics Executive Committee (PEEC) (CPE providers should ensure that topics presented cover all recent significant PEEC activity.)

• Core Content (60 - 75 minutes*)
  (These topics should be covered by referring to relevant VBOA regulations and AICPA Code of Professional Conduct sections. Practical situations and potential solutions must be included and illustrated with short scenarios or simulations.)

  Required:

  • Accounting Principles - VBOA regulation 18 VAC 5-21-120 I and Rule 203, Accounting Principles of the AICPA Code of Professional Conduct

  • Responsibilities - VBOA regulation 18 VAC 5-21-120 A and Section 52, Article I, Responsibilities of the AICPA Code of Professional Conduct

  • Public Interest - VBOA regulation 18 VAC 5-21-120 B and Section 53, Article II Public Interest of the AICPA Code of Professional Conduct

  One of following three is required:

  • Contingent Fees, and Commissions and Referral Fees - VBOA regulations 18 VAC 5-21-120 K and L and Rules 302 and 503 of the AICPA Code of Professional Conduct

  • Planning and Supervision - VBOA regulations 18 VAC 5-21-120 G and Rule 201 C of the AICPA Code of Professional Conduct

  • Acts Discreditable - VBOA regulation 18 VAC 5-21-120 M and Rule 501, Acts Discreditable of the AICPA Code of Professional Conduct

• Process for ethical decision making (5 minutes)**
  (A handout shall be provided.)

*Time allocations are suggestions only. Times allocated to the Core Content subjects may vary depending on the appropriate emphasis for the target audience (e.g., CPAs in public practice versus CPAs in private industry or government).

**Available to CPE providers at the Virginia Board of Accountancy website: http:// www.boa.virginia.gov. Also see the Virginia Board of Accountancy website for more information on the accountancy statute, regulations, and other important information.

Important: During 2009, the Virginia Board of Accountancy will continue the process of developing new regulations based on the new accountancy statute that became effective July 1, 2007. The references to VBOA regulations in this outline are to existing regulations in effect until the new regulations are issued. CPE providers should include this information in their materials and urge participants to monitor the VBOA website for more information. The new regulations will be posted on the website when they become effective.

With the number of negative, but high-profile cases gaining attention in recent years, it is imperative that practitioners be well-versed and clear as to their ethical responsibilities to the public that they serve. This program opens with a discussion of CPA responsibilities to the public, and the ethical decision making process CPAs can follow when faced with ethical dilemmas in practice. The focus then shifts to the updates to the current Virginia Code of Conduct and regulatory developments, as well as core ethical requirements from the Virginia state board regulations and ethical standards from the AICPA Code of Professional Conduct. The program then examines the Statements on Standards for Tax Services and PCAOB Ethics and Independence Rules, before closing with a look at GAO Auditor Independence Standards.

This course meets the Virginia State Board of Accountancy's requirement for licensees in the State of Virginia to have two hours of ethics in continuing education as a condition of re-licensing each year.

Use of Materials

Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the audio CDs and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or DVD or audio CDs that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.

Online
The user should begin by watching the streamed video segment, if any, or listening to the streamed audio segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the streamed video, if any, or listening to the streamed audio, if any, and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or video/audio, if any, that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.

Software
The user should begin by reviewing the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. As the user studies each chapter, s/he should complete the interactive study questions that appear in the lower panel of the screen. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text that were difficult. When the user is ready, s/he should click on the link at the far left to complete the quizzer. The user should email her/his quizzer statistics using the quizzer submission link in the software and the user's CPE certificate will be mailed to her/him.

Chapter 1 describes CPA responsibilities to the public and ethical obligations imposed on CPAs by the accounting profession.

Chapter 2 outlines the updates on the current code of conduct and regulatory developments for CPAs practicing in Virginia.

Chapter 3 discusses state board regulations and ethical standards from the AICPA Code of Professional Conduct.

Chapter 4 examines the Statements on Standards for Tax Services and CPA compliance when practitioners are performing tax engagements.

Chapter 5 discusses the PCAOB rules related to auditor independence.

Chapter 6 covers GAO Auditor Independence Standards.

The Appendix contains a bibliography.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this program includes the following designations:

A Biskpoint presents analysis or commentary that attempts to explain or clarify authoritative guidance.

A Bisktip provides practical advice that may be used to help improve client service or service to the practitioner's organization.

A Biskalert is intended to warn the practitioner of a particular situation that may require action or other consideration by the client or the practitioner on behalf of the client.

A Biskplan offers a strategy/discussion point when a practitioner is faced with a particular issue or situation.

• Discuss how and why regulation of the accounting profession has changed over time, provisions of the Sarbanes-Oxley Act, and the role of the Public Company Accounting Oversight Board

• Describe what is meant by the public interest obligation of accountants and auditors

• Apply an ethical decision-making process to conflicts and dilemmas that occur in the performance of professional responsibilities

• Discuss the requirements to obtain a Virginia license to practice, a firm license, and substantial equivalency

• Explain the restrictions that exist when not holding a valid license to practice or meeting the substantial equivalency provisions

• Evaluate the AICPA peer review process including required responses to matters identified by the reviewers, findings, deficiencies, and the implementation of action plans to correct deficiencies

• Explain the complaint and investigation process in Virginia and the identified disciplinary cases

• Identify relationships that violate the independence rules under the AICPA Code

• Discuss how a CPA should handle differences of opinion in the application of accounting principles

• Explain the responsibilities of a CPA using a third-party service provider

• Discuss when a CPA can accept contingent fees and commissions

• Apply the "realistic possibility" standard for tax return positions

• Discuss how the Statements on Standards for Tax Services provide guidance to CPAs when engaged in tax planning services

• Identify when the provision of tax services impairs auditor independence under PCAOB rules

• Explain when the provision of services related to marketing, planning, or opining on tax transactions violates independence standards

• Discuss when audit committee pre-approval is required before providing professional services to an audit client

• Apply the overarching principles of the GAO that are used to evaluate whether independence may be impaired when providing certain nonaudit services for an audit entity

• Judge independence in fact and appearance when providing audit services to an audit entity

• List the safeguards that should exist to support performing nonaudit services when they do not violate the overarching principles

• Discuss when independence may be impaired because of personal impairments, external impairments, and organizational independence issues