Course Information

Individuals in the accounting and auditing profession have a considerable responsibility to the general public. To gain public trust and maintain professionalism, professional conduct and ethical behavior are necessary. The professional accountants’ code of ethics establishes the standard of behavior expected of them. This is an ethics course for California CPAs. It discusses standards of professional conduct and business practices adhered to by CPAs in order to enhance their profession and maximize idealism, justice and fairness when dealing with the public, clients and other members of their profession.

The course begins with a presentation of ethics and ethical behavior, discussing the relationship between morals and ethics and identifying the causes of unethical behavior. It also explains the process of ethical reasoning and how to apply it when dilemmas occur. It covers the AICPA Code of Professional Conduct, along with the conceptual framework approach to coping with ethical dilemmas. The Sarbanes-Oxley Act and its impact on business ethics, internal control requirements, and the CPA’s responsibilities are summarized. Moreover, a brief discussion of the AICPA’s Standards for Tax Service and the IMA’s Statement of Ethical Professional Practice are included. Finally, it identifies different disciplinary systems within the profession and provides guidance on how to respond to an ethics inquiry from the AICPA. The course includes examples to illustrate the application of various ethical standards.

• Recognize ethical reasoning used by accountants
• Recognize the principles and rules of the AICPA Code of Professional Conduct
• Identify the conceptual framework approach for evaluating threats to independence
• Recognize ethical standards and violations (e.g. nonattest services, act discreditable, advertising)
• Identify the key provisions of the Sarbanes-Oxley Act that influence auditor independence
• Recognize a CPA’s responsibilities in tax practice
• Identify standards of ethical conduct in management accountants
• Recognize licensing and disciplinary mechanisms within the profession