CPA ethics course100% ACCURATE GRADE A+ GUARANTEED

To address an ethical matter and make good judgments, you must first be able to recognize issues when they arise. This means being familiar with the profession's body of rules and regulations from the American Institute of Certified Public Accountants, your local state accountancy board, which issues your license to practice, and other sources of regulation. This also means staying attuned to potential ethical "warning signs." ethical decision making model 1. recognize the ethical issue 2. gather the critical facts 3. identify the stakeholders 4. consider your alternatives 5. consider the effect on stakeholders 6. consider your comfort level 7 consider rules, regulations and laws 8. make a decision 9. document your effort 10. evaluate the outcome Which step in the decision-making model is characterized by asking the question, "Are these options consistent with applicable professional ethics rules, regulations, and laws?" consider rules, regulations and laws. Step 7 asks this question. You may determine that the greatest benefit and least amount of harm would likely result if you take a particular course of action, but if that course of action is inconsistent with the profession's rules of conduct, you may not ignore those rules Which step in the decision-making model is characterized by asking the question, "If you had to discuss your decision in public, would you be concerned about how it reflects on your ethics?" consider your comfort level Step 6 asks you to consider your comfort level. Before you make a decision about the correct action when facing an ethical issue, you should ask yourself some questions. Click the forward arrow to continue. GAO The GAO issues ethics and independence rules that apply to engagements performed under generally accepted government auditing standards (GAGAS). These governmental standards are commonly referred to as the "Yellow Book." We will discuss these rules later in this course. Internal Revenue Service (IRS) The IRS is a government agency under the U.S. Department of the Treasury. The Internal Revenue Code (IRC) authorizes the Secretary of the Treasury to set rules and regulations necessary to enforce the U.S. tax laws. Treasury Department Circular 230 governs federal tax practice before the IRS by CPAs, enrolled agents, attorneys, and actuaries, and the IRS Office of Professional Responsibility (OPR) enforces these regulations. Preparer penalty and confidentiality provisions appear in the IRC. We will discuss the ethics requirements for CPAs in tax practice later in this course. U.S. Department of Labor (DOL) Auditors of employee benefit plans that file reports with the DOL should be aware of the DOL interpretive bulletin on independence. These rules will be addressed later in this course. American Institute of Certified Public Accountants The American Institute of Certified Public Accountants is the national professional organization for all certified public accountants. Its mission is to provide members with the resources and information that enable them to offer valuable services in the highest professional manner to benefit the public, employers, and clients. Securities and Exchange Commission (SEC) The SEC is a federal agency that establishes and enforces accounting and auditing policy, including auditor independence. Its mission is to improve the professional performance of public company auditors to ensure that financial statements are presented fairly and have credibility. We will discuss the SEC independence rules later in this course. Public Company Accounting Oversght Board (PCAOB) The Sarbanes-Oxley Act of 2002 created and authorized the PCAOB to establish auditing and related attestation, quality control, ethics, and independence standards for public company auditors. The SEC oversees the PCAOB's activities. Later, we will address the independence rules that apply to these auditors, which include the PCAOB rules. International Federation of Accountants (IFAC) The IFAC develops standards for auditing, education, ethics, and public sector financial reporting in the accounting profession globally. It also promotes good ethical practices by encouraging professional accounting organizations throughout the world to adopt high ethical standards and helps foster meaningful debate on ethical issues that accountants face. CPAs must follow the rules and standards promulgated by which bodies? State CPA licensing boards are charged with issuing CPA licenses and overseeing the ethical conduct of CPAs in 55 jurisdictions in the United States. It is critically important for CPAs to know their state board's requirements. If you are licensed by more than one state board, you should familiarize yourself with each state's requirements. The American Institute of Certified Public Accountants Professional Ethics Executive Committee (PEEC) promulgates and enforces ethics and independence rules that apply to all of its members. is responsible for maintaining the American Institute of Certified Public Accountants Code of Professional Conduct (the code). ethics The rules or standards governing the conduct of members of a profession The study of the general nature of morals and of specific moral choices In accordance with the accepted principles that govern the conduct of a group, especially of a profession American Institute of Certified Public Accountants Code Principles concerned with basically the public interests Structure of the Code Part 1: Rules and interpretations applicable to members in public practice, including a new conceptual framework applicable to rules other than independence, an independence conceptual framework, and guidance on ethical conflict resolution. Part 2: Rules and interpretations applicable to members in business, including a new conceptual framework applicable to all rules and guidance on ethical conflict resolution. Part 3: Rule and interpretation applicable to all other members (for example, retired or between jobs). Principles of Professional Conduct Broad principles that articulate auditors' responsibilities and their requirements to act in the public interest, to act with integrity and objectivity, to be independent, to exercise due care, and to perform an appropriate scope of services. As a professional CPA, I willingly accept my responsibility to serve. public interest As a professional CPA, I willingly accept my responsibility to maintain and broaden public confidence by performing all my responsibilities with integrity As a professional CPA, I willingly accept my responsibility to maintain my objectivity and to be free of conflicts of interest and to discharge all my responsibilities with... due care Due care implies a certain level of quality and competence in the performance of services members in public practice 1.100 — Integrity and Objectivity 1.200 — Independence 1.300 — General Standards 1.310 — Compliance With Standards 1.320 — Accounting Principles 1.400 — Acts Discreditable 1.500 — Fees and Other Types of Remuneration 1.600 — Advertising and Other Forms of Solicitation 1.700 — Confidential Information 1.800 — Form of Organization and Name Members in Business 2.100 — Integrity and Objectivity 2.300 — General Standards 2.310 — Compliance With Standards 2.320 — Accounting Principles 2.400 — Acts Discreditable Part 3 — Other Members 3.400 — Acts Discreditable interpretations and other guidance Interpretations of the rules of conduct are adopted after exposure to the membership, state societies, state boards, and other interested parties. The interpretations of the rules of conduct, "Definitions," "Application of the Code," and "Citations" provide guidelines about the scope and application of the rules but are not intended to limit such scope or application. Integrity and Objectivity Rule "In the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to others." Principles of Professional Conduct Integrity is an element of character fundamental to professional recognition, requires a member to be, among other things, honest and candid, and is measured in terms of what is right and just. making financials look good-even temporary would be considered unethical, To adjust the books simply to make them appear healthy to donors would be dishonest and show a lack of integrity. In some cases, an act may even be legal, but this does not mean the action is ethical. whistle-blowing CONTINUED.....