Real-World Ethics for Minnesota CPAs is designed to meet the ethical requirements of the Minnesota State Board of Accountancy covering state-specific statutes and administrative rules as well as recent legislative changes. You’ll learn about various ethical theories and their practical applications, methods for approaching ethical dilemmas, AICPA ethical pronouncements and rulings, and PCAOB guidance. As an added bonus, this course contains case studies that help to illustrate how to handle real-life ethical issues and situations, making it a useful and hands-on tool you can use to critique the various ethical decisions you face in your practice.
Upon successful completion of this course, participants will be able to:
- Recognize the various definitions of ethics, its primary function in society, and the history of the philosophy of ethics.
- Identify significant individuals who contributed to the development of ethics, noting their beliefs, teachings, and impact.
- Specify foundational events in the evolution of business ethics, noting their purpose, characteristics, and impact.
- Identify six common ethical standards and the theory of each approach.
- Recognize the components of the Ethical Orientation Questionnaire and how an individual's responses relate to recognizing and resolving ethical dilemmas.
- Recognize the step-by-step process contained in the framework for ethical decision making and the framework for resolving an ethical dilemma.
- Recognize the authority that governs a CPA's ethical behavior, the principles that guide the conceptual framework for the AICPA Code of Professional Conduct, and the restructuring that occurred during the AICPA Ethics Codification project.
- Identify terminology, ethical standards, and rules contained in the AICPA Code of Professional Conduct, noting implementation requirements.
- Recognize the application of authoritative and nonauthoritative guidance in helping the accounting professional avoid common mistakes as illustrated in the provided case studies.
- Specify the guidelines and restrictions established by the Public Companies Accounting Oversight Board for registered public accounting firms auditing SEC filers.
- Identify reputable sources for referencing additional ethical practice material, including the AICPA's newsletter issued by the Professional Ethics Executive Committee.
- Recognize the role of the Professional Ethics Division in investigating disciplinary matters involving AICPA members and members of state societies participating in the Joint Ethics Enforcement Program.
- Recognize the rules for practicing before the IRS and the discipline process for violations of Circular 230.
- Recognize the rules and regulations set forth in the Minnesota Statutes noting the role and powers of the State Board of Accountancy, certified public accountant qualifications, certificate issuance and renewal, enforcement, reinstatement, unlawful acts, confidential communications, and substantial equivalency.
- Recognize the rules and regulations that govern the licensure and regulation of accountants as set forth in the Minnesota Administrative Rules.
Table of Contents
Chapter 1 – An Overview of Ethics
A Nation of Cheaters
What is Ethics?
Chapter 1 Review Questions
Chapter 2 – Major Theories of Ethics
Why Identifying Ethical Standards is Difficult
The Egoism Approach
The Utilitarian Approach
The Rights Approach
The Fairness or Justice Approach
The Common Good Approach
The Virtue Approach
Ethical Orientation Questionnaire
Ethic of Justice
Ethic of Care
Moral Stages of Reasoning
Chapter 2 Review Questions
Chapter 3 – Suggested Methods for Approaching Ethical Dilemmas
A Framework for Ethical Decision Making
Recognize an Ethical Issue
Get the Facts
Make a Decision and Test It
Act, Then Reflect on the Decision Later
Resolving an Ethical Dilemma
Step 1: Analyze the Consequences
Step 2: Analyze the Actions
Step 3: Make a Decision
Chapter 3 Review Questions
Chapter 4 – AICPA Ethical Pronouncements and Rulings and PCAOB Guidance
The AICPA Code of Professional Conduct
AICPA Ethics Codification Project
Restructuring the Code
The Code of Professional Conduct
Preface: Applicable to All Members
0.100 Overview of the Code of Professional Conduct
0.200 Structure and Application of the AICPA Code
0.300 Principles of Professional Conduct
0.500 Nonauthoritative Guidance
0.600 New, Revised, and Pending Interpretations and Other Guidance
Part 1: Members in Public Practice and Part 2: Members in Business
x.100 Integrity and Objectivity
x.110 Conflicts of Interest
x.120 Gifts and Entertainment
x.130 Preparing and Reporting Information
x.300 General Standards
x.310 Compliance with Standards
x.320 Accounting Principles
x.400 Acts Discreditable
The Remainder of the Code of Professional Conduct
Five Cases Related to the Code
Ethics Case Study 1: The Last Shot at the Buzzer...Too Late! The Case of the Losing Lady
Ethics Case Study 2: Do You Have What It Takes? The Case of the Inadequate Accountant
Ethics Case Study 3: Give It Back! The Case of Empty Promises
Ethics Case Study 4: Oops! The Case of the Harmless Mistakes
Ethics Case Study 5: Stop Thief! The Case of the Almost Stolen Clients
Case Suggested Solutions
The PCAOB and Ethics Guidelines
Chapter 4 Review Questions
Chapter 5 – Sources of Other AICPA Ethics Guidance
AICPA’s Professional Ethics Executive Committee
AICPA Ethics Tools and Aids
Chapter 5 Review Questions
Chapter 6 – Ethics in Tax Practice
IRS Circular 230
§10.20 Information to be furnished.
§10.21 Knowledge of client’s omission.
§10.22 Diligence as to accuracy.
§10.23 Prompt disposition of pending matters.
§10.24 Assistance from or to disbarred or suspended persons and former Internal Revenue Service employees.
§10.25 Practice by former government employees, their partners and their associates.
§10.28 Return of client’s records.
§10.29 Conflicting interests.
§10.31 Negotiation of taxpayer checks.
§10.32 Practice of law.
§10.33 Best practices for tax advisors.
§10.34 Standards with respect to tax returns and documents, affidavits and other papers.
§10.36 Procedures to ensure compliance.
§10.37 Requirements for other written advice.
§10.38 Establishment of advisory committees.
§10.51 Incompetence and disreputable conduct.
§10.52 Violations subject to sanction.
§10.53 Receipt of information concerning practitioner.
Chapter 6 Review Questions
Chapter 7 – Minnesota State-Specific Ethics
Active Rulemaking Projects
Recently Completed Rulemaking Projects
Minnesota Statutes (Chapter 326A. Accountants)
326A.02 State Board of Accountancy.
Subdivision 4. Powers.
Subdivision 5. Rules.
Subdivision 6. Complaint committee.
Subdivision 7. Expenses of administration.
Subdivision 8. Executive director.
326A.03 Certified Public Accountant Qualifications.
Subdivision 1. Qualifications.
Subdivision 3. Examination; required education.
Subdivision 3a. Early examination.
Subdivision 6. Certificate; required education and experience.
Subdivision 7. Equivalent education criteria.
326A.04 Certificate Issuance and Renewal; Competency Standard.
Subdivision 1. Eligibility.
Subdivision 1a. Temporary military certificate.
Subdivision 2. Timing.
Subdivision 3. Residents of other states.
Subdivision 4. Program of learning.
Subdivision 5. Fee.
Subdivision 6. Other state licenses.
Subdivision 7. Certificates issued by foreign countries.
Subdivision 8. Other jurisdictions in which foreign applicant is licensed.
Subdivision 9. Application by foreign certificate holder.
Subdivision 10. Peer review.
Subdivision 11. Automatic revocation.
Subdivision 12. Professional ethics examination.
Subdivision 1. Basis for conducting investigations.
Subdivision 2. Hearings conducted under chapter 14.
Subdivision 3. Legal action.
Subdivision 4. Cease-and-desist orders.
Subdivision 5. Actions against persons or firms.
Subdivision 6. Temporary suspension provisions.
Subdivision 7. Violation; penalties; costs of proceeding.
Subdivision 8. Other persons and entities subject to discipline.
Subdivision 9. Notification of other states.
326A.10 Unlawful Acts.
326A.11 Single Act Evidence of Practice.
326A.12 Confidential Communications.
326A.13 Working Papers; Clients' Records.
326A.14 Substantial Equivalency.
Subdivision 2.Use of title in another state.
Minnesota Administrative Rules (Chapter 1105, Licensure and Regulation of Accountants)
1105.0200 Interpretation of Rules.
Subpart 1. Canons of construction.
Subpart 2. Other statutory authority.
Subpart 3. Oral opinions.
Subpart 4. Exceptions.
1105.0250 Incorporation by Reference.
1105.1100 Changes of Address and Other Information.
1105.2450 Good Moral Character.
1105.2500 Applications for Certificates.
1105.3000 Continuing Professional Education Requirements.
1105.3200 Continuing Professional Education Records.
1105.3300 Exception to Continuing Professional Education Requirement.
1105.3600 Quality Review for Licensees Who Do Not Practice In a Firm.
1105.3700 Exemption from Certificate Renewal Requirement.
1105.4700 Peer Review Standards.
1105.4800 Peer Review Requirements.
1105.4900 Exemption from Peer Review Requirement.
1105.5600 Grounds for Enforcement Action.
Subpart 2. Failing to file a report.
1105.6300 Misleading CPA Firm Names.
1105.6400 Fictitious Firm Names.
Chapter 7 Review Questions
Review Question Answers and Rationales
Appendix A: Outside Ethics Reading
Appendix B: State of Minnesota Information Page
Appendix C: Minnesota Code of Professional Conduct
Choose Your Preferred Format
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.
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.
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.
Back to top