Regulatory Ethics
There are no prerequisites.

Course Description

The California Board of Accountancy is responsible for regulating the accounting profession in the public interest through its licensure and enforcement programs. In this course, we'll look at selected sections of the Accountancy Act and California Board of Accountancy Regulations, highlighting their effect on the practice of accounting and citing cases where misconduct has led to Board disciplinary action. Recent California Board of Accountancy disciplinary actions throughout this course serve as great examples of the types of situations and actions that can lead to discipline from the Board.

Approved by the California Board of Accountancy (CBA) in November 2016.

CA Course # RRS-015-1014


Rod Redding, Inactive CPA

Dr. Rod Redding received his PhD from Penn State University after working with Price Waterhouse and IBM. Presently, he presents seminars and webcasts and prepares self-study courses for Western CPE. He has over 30 years' experience as a professor at universities such as the University of North Carolina, the University of Utah, Georgetown University, and Gettysburg College. He also has taught internationally at Kenyatta University in Kenya and the American University of Sharjah in the United Arab Emirates. Three different universities have given Dr. Redding awards for excellence in teaching. Dr. Redding holds a CPA certificate but has elected inactive status.

Dr. Redding’s intellectual contributions are in the fields of financial reporting and auditing. He is the coauthor of the book The FASB: The People, The Process, and The Politics. He has written financial accounting articles on topics such pensions, leases, and capitalization of interest, as well as a number of articles on teaching effectiveness. Each year he publishes The World’s Liveliest Accounting Update, which is a financial accounting, auditing, attestation, compilation, and review update. As indicated by the title, this is an exceptionally energetic and engaging presentation. He is known as one of the country’s most dynamic financial and auditing CPE seminar leaders.

Course Specifics

Regulatory Ethics
Oct 4, 2018
There are no prerequisites.

Compliance Information

CTEC Provider #: 2071
CTEC Course ID: 2071-CE-0909
CTEC Ethics Credit: 2
Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Section 1

  • Recognize the rules, regulations, and standards for professional conduct set forth by the California Board of Accountancy in the Accountancy Act, noting the requirements for continuing education, licensure, registration and renewal, peer review, audit documentation, disciplinary proceedings, penalties, and prohibited practices

Section 2

  • Recognize the rules contained in the California Board of Accountancy Regulations including requirements for examination, practice privileges, registration, peer review, professional conduct, continuing education, and the denial, suspension and revocation of certificates, permits, or licenses

Table of Contents

Section 1 – The Accountancy Act

Learning Objectives


Article 1.5 - Continuing Education

5026. Continuing Education

5027. Continuing Education Regulations

5028. Exceptions from Continuing Education Requirements

Article 3 - Application of Chapter

5050. Practiced Without Permit; Temporary Practice

5055. Title of Certified Public Accountant

5058. Use of Confusing Titles or Designations Prohibited

5058.1. Titles in Conjunction with Certified Public Accountant or Public Accountant

5058.2. Inactive Designation

Article 3.5 - Standards of Professional Conduct

5060. Name of Firm

5061. Commissions

5062. Report Conforming to Professional Standards

5062.2. Restrictions on Accepting Employment with an Audit Client

5063. Reportable Events

5063.1. Reporting by Courts

5063.2. Reporting by Insurers

5063.3. Disclosure of Confidential Client Information Prohibited

5063.10. Restatements

Article 4 - Applications, Registrations, Permits Generally

5070. Public Accountancy Permits and Certificates

5070.5. Expiration of Permits; Renewal; Continuing Education Requirements

5070.6. Renewal of Expired Permits and Effective Date of Renewal of Such Permits

5070.7. Failure to Renew Within Five Years; Reinstatement

5076. Peer Review

5079. Nonlicensee Ownership of Firms

Article 5.5 - Audit Documentation

5097. Audit Documentation Requirements

5098. Audit Documentation Regulations

Article 6 - Disciplinary Proceedings

5100. Discipline in General

5101. Discipline of Partnership

5103. Investigations

5103.5. Notice of Formal Accusations

5104. Relinquishment of Certificate or Permit

5105. Delinquency in Payment of Renewal Fee

5106. Conviction Defined

5107. Payment of Disciplinary Costs; Conditional Renewal

5108. Subpoenas

5109. Jurisdiction Over Expired, Cancelled, Forfeited, Suspended, or Surrendered License

5115. Petitions for Reinstatement or Reduction of Penalty

Article 6.5 - Administrative Penalties

5116. Administrative Penalties General Provisions

5116.1. Administrative Penalties – All Accountancy Act Violations

5116.2. Administrative Penalties – Specific Accountancy Act Violations

Article 7 - Prohibitions and Offenses Against the Chapter Generally

5120. Violations as Misdemeanors

5121. Evidence of Violation

5122. Injunctions

Section 1 Review Questions

Section 2 – California Board of Accountancy Regulations

Learning Objectives


Article 1 - General

§ 3. Notification of Change of Address.

§ 5. Observance of Rules.

Article 2 - Examinations

§ 12 General Experience Required Under Business and Professions Code Sections 5092 and 5093.

§ 12.1 Experience in Academia.

§ 12.5. Attest Experience Under Business and Professions Code Section 5095.

Article 3 - Practice Privileges (operative July 1, 2013 – December 31, 2018)

§ 19 Practice Privilege Forms for Individuals.

Article 5 - Registration

§ 37. Reissuance.

Article 6 - Peer Review

§ 38. Purpose of this Article.

§ 40. Enrollment and Participation.

§ 41. Firm Responsibilities.

§ 42. Exclusions.

§ 44. Notification of Expulsion.

Article 9 - Rules of Professional Conduct

§ 54. Confidential Information Defined, Exception.

Article 12 - Continuing Education Rules

§ 80. Inactive License Status.

§ 81. Continuing Education Requirements for Renewing an Expired License.

§ 87. Basic Requirements.

§ 87.5. Additional Continuing Education Requirements.

§ 87.6. Records Review Continuing Education Requirements.

§ 87.8. Regulatory Review Course.

§ 88. Programs Which Qualify.

§ 89.1. Reports.

§ 90. Exceptions and Extensions.

§ 93. Unexpired Licenses.

§ 94. Failure to Comply.

Article 12.5 - Citations and Fines

§ 95. Citations.

§ 95.1. Citation Format.

§ 95.2. Fines.

§ 95.3. Citation Factors.

§ 95.4. Failure to Comply with Citation.

§ 95.5. Appeals.

§ 95.6. Unlicensed, Unregulated Practice.

Article 13 - Denial, Suspension, and Revocation of Certificates, Permits, or Licenses

§ 98. Disciplinary Guidelines.

§ 99. Substantial Relationship Criteria.


Section 2 Review Questions

Review Question Answers and Rationales

Appendix A – State of California Information Page

Appendix B – Accountancy Act

Appendix C – California Board of Accountancy Regulations



Final Examination

Answer Sheet

Course Evaluation

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