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 the different ethical reasoning methods and how they can assist in making ethical decisions, as well as CPA responsibilities to the public as outlined in the AICPA Principles of Professional Conduct. We will then move into a discussion of the different state rules of conduct Washington CPAs must be in compliance with. The author also reviews Statements on Standards for Tax Services and the PCAOB Ethics and Independence Rules for CPAs.

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 examines different ethical reasoning methods and how they can assist in making ethical decisions.

Chapter 2 describes CPA responsibilities to the public as outlined in the AICPA Principles of Professional Conduct.

Chapter 3 outlines the Public Accountancy Act of Washington State.

Chapter 4 describes the Washington State Board Rules of Conduct.

Chapter 5 examines the independence standards that exist in the AICPA Rules of Professional Conduct, as well as the integrity and objectivity restrictions under the AICPA Code.

Chapter 6 covers additional AICPA ethics rules related to other responsibilities and practices.

Chapter 7 takes a look at the Statements on Standards for Tax Services as well as PCAOB Rules.

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.

• Explain how philosophical reasoning methods can assist in making ethical decisions

• Describe how the elements of utilitarianism, rights, and justice theories might be used to reason out ethical dilemmas

• Discuss how business entities have made mistakes in decisionmaking by ignoring ethical reasoning considerations

• Describe how ethical reasoning can be used to decide on the proper course of action in accounting decisions

• Discuss how and why regulation of accounting has changed over time and the role of the Public Company Accounting Oversight Board

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

• Explain the ethical obligations of licensees under the integrity and objectivity standards

• Discuss how the Principles of the AICPA Code of Professional Conduct provide guidance in the performance of professional responsibilities

• Describe what it means to have an ethical dilemma in accounting and how to deal with such issues in an ethical manner

• Evaluate the requirements to grant the practice privilege to CPAs licensed in another state who want to practice in Washington

• Identify licensing requirements for CPAs and CPA firms

• Differentiate between practices that are prohibited and not prohibited

• Explain when workpapers, records, schedules, and other documents should be returned to the client

• Discuss the circumstances when confidential client information can be disclosed

• Discuss enforcement concerns of the board and the board rules, policies, and rule-making process

• Identify the requirements for record retention and confidential client information

• Identify when commissions, referral, and contingent fess can be accepted for performance services provided to a client

• Evaluate the requirements for other ethics standards including advertising and solicitation, acts discreditable, and the use of firm names

• Explain the requirements to apply for a license to practice in Washington, including firm licensure requirements and obtaining substantial equivalency status

• Discuss the requirements for continuing professional education and participation in quality assurance review (QAR) programs

• Discuss enforcement actions to be reported to the board and the basis for the imposition of discipline by the board

• Describe when threats to independence may impair independence in the performance of professional services

• Explain when relationships between a CPA and a CPA’s immediate family and close relatives might impair independence

• Explain the ethical obligations of a CPA to be objective and maintain integrity in dealing with supervisors and clients

• List the ethical obligations of a CPA to a client when using a third-party service provider to assist in providing professional services

• Discuss when ethics interpretations and rulings may affect the application of the independence, integrity, and objectivity rules of conduct

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

• 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