With the number of negative, 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 the discussion of what is meant by ethics and the factors that influence ethical behavior, and also discusses the creative accounting behind some of the more infamous company accounting scandals of recent years. The author then reviews the various rules and requirements that CPAs need to be in compliance, including those of the Accountancy Law under the Ohio Revised Code, the AICPA Principles and Rules of Conduct, Statements on Standards for Tax Services, and the Public Company accounting Oversight Board rules.

This course meets the Ohio Board of Accountancy requirement to have three (3) hours of professional standards and responsibilities triennially.

Bisk Alert: The AICPA Professional Ethics Division issued Proposed Revised and New Interpretations and Proposed Deletion of Ethics Rulings on June 29, 2012. Comments to the exposure draft will be considered by PEEC at its October 25-26, 2012, open meeting and final changes to Interpretation 101-3 under Rule 101 are expected to take effect subsequent to that meeting. Additional changes pending affect Rules 501 and 502 and ethics rulings under Rule 102, 501, and 502. The exposure draft can be reviewed at:

http://www.aicpa.org/interestareas/professionalethics/community/exposuredrafts/
downloadabledocuments/2012juneomnibusproposalaicpaprofessionalethicsdivision.pdf

Use of Materials

DVD
The user should begin by watching the DVD 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. 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 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 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.

Chapter 1 focuses on the definition of, and influences on, ethical behavior and how it is achieved using a moral development model.

Chapter 2 explains a CPA's responsibilities to the public as described in the AICPA Principles of Professional Conduct and philosophical reasoning methods that can assist in making ethical decisions.

Chapter 3 examines the professional ethics statutes that CPAs and CPA firms must adhere to under the Ohio Revised Code.

Chapter 4 discusses the Ohio Board of Accountancy rules for Ohio CPAs and CPA firms.

Chapter 5 explains independence, integrity, and objectivity as it relates to the AICPA Code of Professional Conduct.

Chapter 6 covers other AICPA ethics rules.

Chapter 7 examines the various Statements on Standards for Tax Services and discusses the PCAOB ethics and independence rules.

The Appendix provides a listing of recommended readings and sources for additional information.

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 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.

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.

• Describe the relationship between following the law and ethical behavior

• Discuss how virtue influences one's ability to reason ethically

• Explain how one's moral development influences ethical decision-making

• Discuss the role of integrity in ethical decision-making by CPAs

• Identify the characteristics of the accounting profession and the regulatory system for CPAs

• Describe the role and responsibilities of the Public Company Accounting Oversight Board

• Discuss ethical considerations for accounting professionals

• Identify and describe the Principles of the AICPA Code of Professional Conduct

• Identify the requirements for the registration of public accounting firms under the Ohio Revised Code

• Explain the limitations on the practice of public accounting in Ohio and the use of the CPA title

• Discuss when a CPA may be disciplined for failing to adhere to the statutes and rules of conduct

• Describe the requirements for a practice privilege

• Identify the technical and behavioral standards rules to be adhered to by Ohio permit holders and Ohio registered firms

• Explain the expected standards of practice in the performance of professional services for clients

• Discuss the ethical obligations of permit holders and registered firms to clients including confidentiality and records retention

• Describe the requirements to undergo a peer review in Ohio

• Explain the continuing education requirements

• Discuss the requirements for licensure and registration of a practice

• Discuss the components of independence, the risk-based approach to analyzing independence, and the independence rules of the AICPA

• Identify the restrictions on providing nonattest services to audit and attest clients

• Describe the circumstances when independence may be impaired because of relationships between an attest client and its affiliates

• Explain the ethical responsibilities and obligations for CPAs to avoid subordinating professional judgment to that of a supervisor

• Explain a CPA's ethical obligations to perform professional services with competence and to follow required standards of practice including GAAP

• Discuss the confidentiality obligation of CPAs including when using a third-party service provider

• Describe when client provided records, member-prepared records, member work products, and member working papers should be provided to the client

• Explain the application of other rules of conduct including when contingent fees and commissions can be accepted; advertising and solicitation requirements; and restrictions on the form and name of an organization practicing public accounting

• Explain the "realistic possibility of success" standard for return positions

• Describe the standards for issuing an opinion to reflect the results of a tax planning services

• Discuss 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