Self-Study
4
Overview
Regulatory Ethics
There are no prerequisites.

Course Description

Ethical Conduct for Florida CPAs is designed to meet the four-hour Ethics CPE requirement for Florida CPAs. The course provides an overview of ethical thought, the core values of the CPA profession, and the application of these values to ethical reasoning. Chapters 455 and 473 of the Florida Statutes and the related administrative rules found in section 61H1 of the Florida Administrative Code are reviewed, as is the AICPA Code of Professional Conduct. Case studies are utilized throughout the course to emphasize material.

Approved by the Committee on Continuing Professional Education on August 23, 2017.

Note: A passing grade of 80% is required for this course.



Instructor

Joseph Helstrom, CPA

Joseph Helstrom, CPA, is a partner at CFO Resources, LLC, a company focused on training and courseware for CPAs. He’s also the owner of Mill Creek Publishing LLC. Joe has over 30 years of experience as a CPA in both public accounting and industry, with extensive experience in financial reporting and analysis, treasury, tax, information technology, legal and regulatory matters, and strategic planning.

After graduation from Butler University with a degree in accounting, Joe got his start at Ernst & Young. Subsequent to that, he has served for several different companies as a chief financial officer; director of treasury and tax; controller; and manager of financial planning, reporting, and analysis.

Joe and his wife, Patricia McCarthy, produce self-study courses for Western CPE and have published articles in Missouri and Texas CPA society publications titled “Incorporating Excel Arrays into Your Audit Plan.”



Course Specifics

Regulatory Ethics
Feb 7, 2018
There are no prerequisites.
SS4150624
173
None


Compliance Information

103220
Qualifies for CA Fraud: No


Learning Objectives

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

Chapter 1

  • Recognize the definitions of morals and ethics and the differences between each

Chapter 2

  • Recognize the characteristics of various threats in public practice and ways to evaluate threats and identify appropriate safeguards

Chapter 3

  • Recognize the ethical standards contained in the Florida Board of Accountancy rules and related Florida statutes

Chapter 4

  • Recognize the ethical standards contained in the AICPA Code of Professional Conduct


Table of Contents

Chapter 1 – Overview

Learning Objectives

Ethics Background

Morals

What is Ethics?

The Relationship of Morals and Ethics

Alcohol

Nike

Summary

Illustrative Examples of Ethics

Professional Ethics

Legal vs. Ethical

Why Should We Study Professional Ethics?

Accounting Ethics

Ethical Core Foundations for CPAs

Independence

Integrity

Objectivity

Other Ethical Foundations of the CPA Profession

Public Interest

Due Care

Chapter 1 – Review Questions

Chapter 2 – Ethical Threats & Safeguards

Learning Objectives

Ethical Reasoning

Case Studies – Threats and Safeguards

Example Thought Process

Example Thought Process

Ethical Dilemmas

Case Studies of Ethical Lapses

Enron

Ethical Lapses of Andersen

Questions for Consideration

The Travel Expense Department

Ethical Lapses of the Travel Expense Department Manager

Question for Consideration

Motivations of Ethical Lapses

Questions for Consideration

Chapter 2 – Review Questions

Chapter 3 – Florida State Board of Accountancy Rules and Related Florida Statutes

Learning Objectives

The Florida State Board of Accountancy Rules

Summary of Changes to the Florida State Board of Accountancy Rules and Florida Statutes in 2015 and 2016.

61H1-20.001 Definitions.

61H1-20.002

“Attest as an Expert in Accountancy to the Reliability or Fairness of Presentation” or “Expression of Opinion.”

61H1-20.003 Client.

61H1-20.004 Enterprise.

61H1-20.005 Financial Statements.

61H1-20.0051 Assembled Financial Statements.

61H1-20.0052

Offer to Perform or Perform Services Involving Assembled Financial Statements.

61H1-20.0053 Standards for Assembled Financial Statements.

61H1-20.007 Generally Accepted Accounting Principles. (Repealed)

61H1-20.008 Generally Accepted Auditing Standards. (Repealed)

61H1-20.009 Standards for Accounting and Review Services. (Repealed)

61H1-20.0092 Government Auditing Standards. (Repealed)

61H1-20.0093 Rules of the Auditor General.

61H1-20.0095 Standards for Consulting Services. (Repealed)

61H1-20.0096 Services for Tax Practice. (Repealed)

61H1-20.0097 Standards for Personal Financial Planning. (Repealed)

61H1-20.0098 Standards for Business Valuations. (Repealed)

61H1-20.0099 Standards for Attestation Engagements. (Repealed)

61H1-20.010 Engagement.

61H1-20.013 Employee.

61H1-20.016 Non-CPA Shareholders, Partners, and Members.

61H1-21.001 Independence.

Section 101-1. Independence-General Provisions

Application of the Independence Rules to Covered Licensees Formerly Employed by a Client or Otherwise Associated With a Client

Application of the Independence Rules to a Covered Licensee’s Immediate Family

Other Considerations

Section 101-2. Employment or Association with Attest Clients

Considering Employment or Association with the Client

Section 101-3. Reserved

Performance of nonattest services.

Engagements Subject to Independence Rules or Certain Regulatory Bodies.

General Requirements for Performing Nonattest Services

General Activities

Specific Examples of Nonattest Services

Internal Audit Assistance Services

Transition

Section 101-4.

Honorary Directorships and Trusteeships of Not-For-Profit Organization.

Section 101-5. Permitted Loans

Grandfathered Loans

Other Permitted Loans

Section 101-6. The Effect of Actual or Threatened Litigation on Independence.

Litigation between client and licensee

Other third-party litigation

Effects of impairment of independence

Termination of impairment

101-7. Reserved

101-8.

Effect on Independence of Financial Interests in Nonclients Having Investor or Investee Relationships with a Covered Licensee's Client.

Introduction

Interpretation

Section 101-9. Reserved

Section 101-10.

The Effect on Independence of Relationships with Entities Included in the Governmental Financial Statements.

Auditor of Financial Reporting Entity

Section 101-11. Reserved

Section 101-12. Independence and Cooperative Arrangements with  Clients.

Independence Case Study

61H1-21.002 Integrity and Objectivity.

Integrity and Objectivity Case Study

61H1-21.003 Commissions or Referral Fees.

61H1-21.005 Contingent Fees.

Contingent Fee Case Study

61H1-21.006 Communication with Client of Another Certified Public Accountant.

61H1-22.001 Competence (General Standards).

General Standards Case Study

61H1-23.001 Confidential Client Information.

61H1-23.002 Records Disposition Responsibility.

61H1-24.001 Advertising.

Advertising Case Study

61H1-24.002 Solicitation. (Repealed)

61H1-25.001 Responsibility for Other Persons.

61H1-26.001 Form of Practice and Name-Shared Office Space.

61H1-26.002

Minimum Capitalization or Adequate Public Liability Insurance for Florida Firms with the Exception of a Sole Proprietorship.

61H1-26.003 Licensure of Florida Certified Public Accountant Firms.

61H1-26.004 Changes by Firms.

61H1-26.005 Address of Record.

61H1-33.001 Certified Public Accountants Required to Comply with this Chapter.

61H1-33.002 Organization and Administration.

61H1-33.003 Continuing Professional Education.

61H1-33.0031 Continuing Professional Education/Ethics.

61H1-33.0032 Board Approval of CPA Ethics Continuing Education by Providers.

61H1-33.0033 Obligations of CPA Ethics Course Continuing Education Providers.

61H1-33.0034 Evaluation of CPA Ethics Course Providers.

61H1-33.00341 Duration of CPA Ethics Course Provider Status.

61H1-33.00342 CPA Ethics Courses – Standards for Approval of Courses.

61H1-33.0035 Continuing Professional Education/Governmental Auditing.

61H1-33.006

Inactive or Delinquent Florida Certified Public Accountants Who Desire to Become Active Licensees.

61H1-33.0065

Exemption from Renewal Requirements for Spouses of Members of the Armed Forces of the United States.

61H1-34.001

Preparation of Financial Statements by Persons Other than Certified Public Accountants or Inactive Certified Public Accountants.

61H1-34.002 Notice to Public by Non-Licensed Persons.

61H1-36.002 Return of Certificates or Licenses.

61H1-36.003 Time for Payment of Civil Penalties. (Repealed)

61H1-36.004

Disciplinary Guidelines; Range of Penalties; Aggravating and Mitigating Circumstances.

61H1-36.005 Citations.

61H1-36.0055 Minor Violation, Notice of Non-Compliance.

61H1-36.006 Mediation.

61H1-39.001 Definitions.

61H1-39.002 Peer Review Program Standards.

61H1-39.003 Peer Review Administering Entities.

61H1-39.004 Peer Review Oversight Committee Composition and Responsibilities.

61H1-39.005 Compliance with Peer Review Requirements.

Chapter 3 – Review Questions

Chapter 455 Florida Statutes

455.224Authority to issue citations.

455.225Disciplinary proceedings.

455.2255Classification of disciplinary actions.

455.227Grounds for discipline; penalties; enforcement.

Failure to Report to the Board Case Study

455.2273Disciplinary guidelines.

455.2274

455.2275Penalty for giving false information.

455.2277Prosecution of criminal violations.

455.228

Unlicensed practice of a profession; cease and desist notice; civil penalty; enforcement; citations; allocation of moneys collected.

455.2281Unlicensed activities; fees; disposition.

455.2285

Annual report concerning finances, administrative complaints, disciplinary actions, and recommendations.

455.2286Automated information system.

455.229

Public inspection of information required from applicants; exceptions; examination hearing.

455.232Disclosure of confidential information.

Chapter 473 Florida Statutes

473.302Definitions.

473.303Board of Accountancy.

473.3035Division of Certified Public Accounting.

473.304Rules of board; powers and duties; legal services.

473.305Fees.

473.306Examinations.

473.3065

Clay Ford Scholarship Program; Certified Public Accountant Education Minority Assistance Advisory Council.

473.308Licensure.

473.309

Practice requirements for partnerships, corporations, and limited liability companies; business entities practicing public accounting.

473.3101

Licensure of firms or public accounting firms.

473.311Renewal of license.

473.312Continuing education.

473.3125Peer review.

473.313Inactive status.

473.314Temporary license.

473.3141Certified public accountants licensed in other states.

473.315Independence, technical standards.

473.316Communications between the accountant and client privileged.

473.318Ownership of working papers.

473.319Contingent fees.

473.3205Commissions or referral fees.

473.321Fictitious names.

473.322Prohibitions; penalties.

473.323Disciplinary proceedings.

Overall Case Study – 61H1 F.A.C. and Chapters 455 and 473 F.S.

Chapter 3 – Review Questions

Chapter 4 – AICPA Code of Professional Conduct

Learning Objectives

The AICPA Code of Professional Conduct

About the Code

Preface

Part 1 – Members in Public Practice

Adverse interest threat

Advocacy threat

Familiarity threat

Management participation threat

Self-interest threat

Self-review threat

Undue influence threat

Rule 1.100 Integrity and Objectivity

Case Study – Married Tax Clients Divorcing

1.130 Preparing and Reporting Information

Case Study – Bernard Madoff Investment Securities LLC

Case Study – Phar-Mor

1.200 – Independence

Rule 1.300—General Standards Rule

1.310 Compliance with Standards Rule

Case Study – Peer Review Discoveries

1.320 Accounting Principles Rule

1.400.001 Acts Discreditable Rule

1.510.001 – Contingent Fees Rule

1.520.001 – Commissions and referral fees Rule

1.600.001 -- Advertising and other forms of solicitation

1.700.001 – Confidential client information rule

1.800.001 – Form of organization and name rule

Part 2 – Members in Business

Conceptual Framework Approach

Threats

Safeguards

2.100.001 – Integrity and Objectivity Rule

2.130.030 Obligation of a Member to His or Her Employer’s External Accountant

Case Study – Fair Finance

2.300.001 – General standards rule

2.310.001 – Compliance with standards rule

2.320.001 – Accounting principles rule

Case Study – The Company with Excess Reserves

Case Study – The Company with Undisclosed/Unrecorded Contingencies

2.400.001 – Acts Discreditable Rule

2.400.070 – Confidential Information from employment or volunteer activities

Part 3 – Other Members

3.400.001 – Acts Discreditable Rule

3.400.070 – Confidential Information from Employment or Volunteer Activities

Chapter 4 – Review Questions

Review Question Answers and Rationales

Glossary

Index

Qualified Assessment

Answer Sheet

Course Evaluation



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