Beruflich Dokumente
Kultur Dokumente
Mod B-2
Learning Objectives
1. 2. 3. 4. Understand general ethics and a series of steps for making ethical decisions. Reason through an ethical decision problem using the imperative, utilitarian, and generalization principles of moral philosophy. Identify the different entities that make ethics rules for CPAs and public accounting firms. With reference to American Institute of Certified Public Accounting (AICPA), Government Accountability Office (GAO), Public Company Accounting Oversight Board (PCAOB), and Securities and Exchange Commission (SEC) rules, analyze factual situations and decide whether an accountants conduct does or does not impair independence. With reference to AICPA rules on topics other than independence, analyze factual situations and decide whether an accountants conduct does or does not conform to the AICPA Rules of Conduct. Explain the types of penalties that can be imposed on accountants.
5.
6.
Mod B-3
Mod B-4
Mod B-6
Mod B-7
Mod B-8
Interpretations
Ethical Rulings
Mod B-10
An Emphasis on Independence
Rule 101: Independence
A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council.
Mod B-11
Mod B-12
Mod B-13
Managerial relationships
Cannot act as a promoter, underwriter, or equivalent to an employee (i.e., no decision making)
Mod B-14
Close relative All immediate family members and parents, siblings, or nondependent child cannot
Ownership or control of an audit client Employment with a client in an audit sensitive position
Mod B-15
AICPA Code of Professional Conduct Rule 101: Independence Write-up services are allowed if:
Client understands and accepts the statements as their own Auditor does not assume a role of employee or management No other relationship that impairs integrity and objectivity Exception: Cannot do write-up services for public company clients
Mod B-16
Mod B-17
Threatened litigation impairs independence if management and the auditors are suing each other.
Management
Auditor
Auditor
Owns
Nonclient
Owns
Client
Audit
Mod B-19
Mod B-20
Mod B-21
Do not knowingly misrepresent facts. Do not subordinate judgments to others. Do not knowingly make false or misleading entries in an entitys financial records.
Mod B-23
AICPA Code of Professional Conduct Rule 102: Integrity and Objectivity If disagreements exist concerning the preparation of financial statements or the recording of transactions, accept the supervisors position if acceptable.
Report to higher level if supervisors position is not acceptable. Consider resigning if upper management will not take appropriate action.
Mod B-24
Mod B-25
Mod B-26
Contingent Fees: Those fees based on a particular finding or outcome Not permitted for attest engagements Not contingent if:
Fixed by courts Based on hours worked or services provided
Mod B-27
Mod B-28
Mod B-29
Commissions: recommending the products or services of clients or third parties (non-CPA) permitted for non-attest, if disclosed prohibited for attest engagements Referrals: recommending the services of CPAs permitted for any engagement, if disclosed
Mod B-30
Firm name should not be misleading. All partners must be CPAs or members of AICPA if included in firm name.
Mod B-31
Mod B-32