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 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 reviews the Oregon Board of Accountancy Administrative Rules and Statutes and requirements under the Oregon Code of Professional Conduct. The program then examines the Statements on Standards for Tax Services and PCAOB Ethics and Independence Rules. The program finishes with cases in ethics involving accounting.

This course meets the Oregon State Board of Accountancy's requirement for licensees in the State of Oregon to have four (4) hours of ethics in continuing education as a condition of re-licensing for each biennial period.

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 describes Oregon Board of Accountancy Revised Statutes that Oregon CPAs must be in compliance with, specifically Chapter 673.

Chapter 4 examines the Rules of the Oregon Board of Accountancy that Oregon CPAs must be in compliance with, specifically Rule 801.

Chapter 5 discusses the Oregon Code of Professional Conduct, including independence, integrity, objectivity, and compliance with technical standards.

Chapter 6 illustrates different circumstances where practitioners did not follow the applicable laws and statutes, and the disciplinary consequences for those actions.

Chapter 7 explains independence, integrity, and objectivity as it relates to the AICPA Code of Professional Conduct.

Chapter 8 covers other AICPA ethics rules.

Chapter 9 examines the various Statements on Standards for Tax Services and discusses the PCAOB ethics and independence rules.

Chapter 10 analyzes some specific cases on ethics and professional responsibilities involving the accounting profession.

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 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

• Explain how one's moral development influences ethical decisionmaking

• 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

• List the requirements for CPAs licensed in another state or country to meet the substantial equivalency requirements in Oregon

• Identify the causes of disciplinary action and possible sanctions against licensed CPAs

• Explain the restrictions on the payment or acceptance of commissions, contingent fees, and referral fees

• Describe the firm ownership requirements in Oregon

• Discuss the continuing education requirements for CPAs in Oregon

• List the requirements to reinstate a lapsed permit and change from inactive to active status

• Describe the requirements to undergo a peer review in Oregon

• Discuss the rules with respect to independence, integrity, and objectivity in the performance of professional services

• Describe the technical standards of practice including competence, due care, and following appropriate professional standards

• Describe the restrictions that exist when advertising and soliciting professional services to potential clients

• Describe the implications of the rulings on the licensee's practice of public accountancy

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

• 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 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

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

• Identify red flags that might be indicators of fraud

• Describe the requirements of strong internal controls and corporate governance systems under the Sarbanes-Oxley Act and how they enhance financial reporting

• Explain the responsibilities of internal accountants and auditors when fraud exists in a company

• Discuss the responsibilities of external auditors when fraud exists in a client entity