Self-Study
8
Basic
Regulatory Ethics
There are no prerequisites.

Course Description

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.



Instructor

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 13, 2017
There are no prerequisites.
SS4130592
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 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.

Chapter 2

  • 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.

Chapter 3

  • Recognize the step-by-step process contained in the framework for ethical decision making and the framework for resolving an ethical dilemma.

Chapter 4

  • 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.

Chapter 5

  • 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.

Chapter 6

  • Recognize the rules for practicing before the IRS and the discipline process for violations of Circular 230.

Chapter 7

  • 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

Learning Objectives

A Nation of Cheaters

What is Ethics?

Summary

Chapter 1 Review Questions

Chapter 2 – Major Theories of Ethics

Learning Objectives

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

Level 1—Pre-Conventional

Level 2—Conventional

Level 3—Post-Conventional

Summary

Chapter 2 Review Questions

Chapter 3 – Suggested Methods for Approaching Ethical Dilemmas

Learning Objectives

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

Summary

Chapter 3 Review Questions

Chapter 4 – AICPA Ethical Pronouncements and Rulings and PCAOB Guidance

Learning Objectives

The AICPA Code of Professional Conduct

AICPA Ethics Codification Project

Restructuring the Code

Conceptual Frameworks

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.000 Introduction

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

Summary

Chapter 4 Review Questions

Chapter 5 – Sources of Other AICPA Ethics Guidance

Learning Objectives

AICPA’s Professional Ethics Executive Committee

Ethics Enforcement

AICPA Publications

Ethics Hotline

AICPA Ethics Tools and Aids

Summary

Chapter 5 Review Questions

Chapter 6 – Ethics in Tax Practice

Learning Objectives

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.

§10.26 Notaries.

§10.27 Fees.

§10.28 Return of client’s records.

§10.29 Conflicting interests.

§10.30 Solicitation.

§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.

§10.35 Competence.

§10.36 Procedures to ensure compliance.

§10.37 Requirements for other written advice.

§10.38 Establishment of advisory committees.

§10.50 Sanctions.

§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

Learning Objectives

Rulemaking

Active Rulemaking Projects

Recently Completed Rulemaking Projects

Minnesota Statutes (Chapter 326A. Accountants)

326A.02 State Board of Accountancy.

Subdivision 1.Board.

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.

326A.08 Enforcement.

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.09 Reinstatement.

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 1.Requirements.

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.

1105.1200 Communications.

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

Glossary

Index

Final Examination

Answer Sheet

Course Evaluation



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