Regulatory Ethics
There are no prerequisites.

Course Description

The Code of Professional Conduct is a set of principles, rules and interpretations that guides CPAs in the performance of their professional responsibilities. This course provides an in-depth overview of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct. The course includes a discussion of those principles applicable to all members, but also addresses those requirements for members in business, members in public practice, and members in neither business nor public practice. Other topics covered in this course include differentiating between various threats for members of public practice and members in business, identifying safeguards to be applied to various identified threats, and identifying activities that would impair a member's independence.


Kelen Camehl, CPA, MBA

Kelen is a CPA with 15 years of progressive finance and accounting experience. Currently, he serves as a Senior Manager of Technical Accounting with HP, Inc. Prior to this role, he served in multiple accounting roles in the oil and gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and global internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors in Houston, TX.

Kelen has remained actively involved in CPA exam content development for the past eight years and has authored over a thousand multiple-choice questions for various sections of the exam, attending workshops with the AICPA across the country each year. He also serves as an editorial advisor for the AICPA’s Journal of Accountancy as well as both an author and technical reviewer for continuing professional education (CPE) courses published by the AICPA. He also authors CPE courses and serves as a technical reviewer and revision editor for Wolters Kluwer (CCH Group) and WebCE as well as contributing to CPE course development for SmartPros. He also authors CPE courses for PDH Academy.

Kelen received his BBA in Accounting from Texas A&M University—Corpus Christi, TX and an MBA from the University of Texas—San Antonio. He is a CPA licensed in the state of Texas.

Course Specifics

Regulatory Ethics
Jul 14, 2016
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

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

  • Identify the different parts of the AICPA Code of Professional Conduct, noting the effective dates of the revised code
  • Define applicable ethical terms found within the AICPA Code of Professional Conduct
  • Cite the steps within the conceptual framework approach
  • Recognize the various threats applicable to members in public practice, members in business, and other members, noting examples of each
  • Identify safeguards to be applied to various identified threats
  • Identify various principles, rules, and interpretations within the Code
  • Identify those activities that would and would not impair a member's independence, noting acceptable professional services
  • Specify situations where a member can accept a contingent fee
  • Differentiate between interpretations applicable to members in public practice, members in business, and other members

Table of Contents

Professional Ethics for CPAs

Learning Objectives


Organization of the Code

Evolution of the Code

Conceptual Frameworks

Scope and Application of the Code

Principles of Professional Conduct

Responsibilities Principle

Public Interest Principle

Integrity Principle

Objective and Independence Principle

Due Care Principle

Scope and Nature of Services Principle

Review Questions

Members in Public Practice

Conceptual Framework

Step 1 - Identify Threats

Adverse Interest Threat

Advocacy Threat

Familiarity Threat

Management Participation Threat

Self-Interest Threat

Self-Review Threat

Undue Influence Threat

Step 2 – Evaluate the Significance of the Threat(s)

Step 3 – Identify and Apply Safeguards

Safeguards Created by the Profession, Legislation, or Regulation

Safeguards Implemented by the Client

Safeguards Implemented by the Firm

Step 4: Evaluation of the Effectiveness of Safeguards

Step 5: Documentation

Conceptual Framework Flowchart

Illustrative Examples


Ethical Conflicts

Review Questions

Rules for Members in Public Practice

Integrity and Objectivity Rule

Conflicts of Interest

Gifts and Entertainment

Preparing and Reporting Information

Client Advocacy

Use of a Third-Party Service Provider

Independence Rule

Conceptual Framework Approach for Independence

Adverse Interest Threat

Advocacy Threat

Promoting Securities as part of IPO

Expert Witness Services to a Client

Familiarity Threat

Family Members in Key Positions at Attest Client

Former Employment or Association with an Attest Client

Management Participation Threat

Simultaneous Employment or Association with an Attest Client

Accepting Responsibility for Internal Controls for an Attest Client

Self-Interest Threat

Financial Interest in Attest Client

Loans and Leases with Lending Institutions

Self-Review Threat

Undue Influence Threat

Offering or Accepting Gifts or Entertainment

Review Questions

General Standards Rule


Compliance with Standards Rule

Accounting Principles Rule

Departures from GAAP

Financial Statements Prepared Under Frameworks other than GAAP

Acts Discreditable Rule

Contingent Fees Rule

Advertising and Other Forms of Solicitation Rule

Confidential Client Information Rule

Form of Organization and Name Rule

Partner Designation

Firm Name

Members in Business

Conceptual Framework - Threats

Adverse Interest Threat

Advocacy Threat

Familiarity Threat

Self-Interest Threat

Self-Review Threat

Undue Influence Threat

Conceptual Framework - Safeguards

Other Members

Acts Discreditable Rule

Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation

Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

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