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Accountant Ethics for Colorado #596226

Course Overview

Credit

Amount

CPA

Course Author: Steven M. Bragg, CPA Field of Study (CPA): Ethics, Regulatory Ethics

Course Description

Course publication/revision date: This course was updated on 12/14/2025.

This 4-hour course is designed to meet the Ethics CPE requirement of the Colorado State Board of Accountancy (the “Board”). Note, per the Board, of the 4 hours of CPE in ethics, “2 hours may be in Colorado Rules and Regulations (CR&R).” This course includes 2 hours in the CR&R. As an alternative, you can also meet the ethics requirement with our 4 hour course Ethics for Accountants 4 CPE.

In this course, we explore ethical principles and values, noting how contextual factors and other issues may cause a person to adopt skewed or incorrect ethical positions. The course then covers ethical reasoning and its application to common accounting dilemmas. This course also discusses the Colorado Statutes and Rules that pertain to CPAs licensed to practice in the State of Colorado. Students will become familiar with the Colorado Revised Statutes, the Rules of the State Board of Accountancy, and the Policies adopted by the Board currently in effect and how the statutes, rules, and policies pertain to them.

Please consult the Colorado Board of Public Accountancy for further information.

Table of Contents

Introduction1

Ethical Principles and Values1

Definition of Ethics	1
Normative Ethics	2
The Intuitive Approach	2
Virtue Ethics	3
Ethical Principles	3
Ethical Values	5

The Need for Ethics in Accounting5

Fraud Triggers	7
Perceived Pressure	8
Opportunity	8
Rationalization	10
Contextual Factors	10
Imposed Pressure	10
Interpersonal Interactions	10
Dislike of Managers	11
Peer Impacts	11
Social Bonding Effects	11
Organizational Structure	12
Perceived Fairness	12
Working Conditions	12
Wealth Effects	12
Summary	13
Why Employees Violate Their Own Ethical Standards	13
Euphemisms	14
Antisocial Behavior	14
Time Pressure	14
The Crowding-Out Effect	15
Goal Sickness	15
The Waterbed Effect	16
Review Questions	17

Ethical Reasoning and Dilemmas18

Self-Centering as a Bar to Ethical Reasoning	18
Dispositions Causing Egocentric Behavior	19
The Significance of Perspective	19
Ranges of Ethical Reasoning	20
Ethics and the Law	20
Clearly Unethical Acts	21
The Essential Ingredients of Ethical Reasoning	21
An Examination of the "Facts"	22
Assessing Ethical Reasoning	23
Ethical Conflicts	23
Review Questions	25

Colorado Rules, Statutes, and Policy Statements26

1.5 EDUCATION REQUIREMENTS FOR EXAMINATION AND CERTIFICATION	26
A. GENERAL INFORMATION	26
B. COLLEGE OR UNIVERSITY ACCREDITATION	26
C. APPROVED ACCOUNTING PROGRAM	27
D. EDUCATION REQUIREMENTS FOR EXAMINATION	27
E. EDUCATION REQUIREMENTS FOR CERTIFICATION	29
1.6 EXAMINATION GENERAL REQUIREMENTS AND PROHIBITED CONDUCT	30
A. APPLICATIONS	30
B. EXAMINATION ELIGIBILITY	30
C. OFFICIAL TRANSCRIPTS	30
D. WITHDRAWALS	30
E. CANDIDATE CONDUCT DURING EXAMINATION	30
F. CONDITIONING REQUIREMENTS	32
G. NOTICE TO SCHEDULE (NTS)	32
1.7 EXPERIENCE REQUIREMENTS FOR CERTIFICATION	32
A. GENERAL EXPERIENCE AND VERIFICATION REQUIREMENTS	32
B. PUBLIC ACCOUNTING	33
C. INDUSTRY	33
D. GOVERNMENT	33
E. ACADEMIA	34
1.8 REQUIREMENTS FOR CERTIFICATION	34
A. GENERAL PROVISIONS	34
B. GENERAL CERTIFICATION REQUIREMENTS	34
C. EXAMINATION MORE THAN 10 YEARS PRIOR TO THE CERTIFICATION APPLICATION DATE
C. EXAMINATION MORE THAN 10 YEARS PRIOR TO THE CERTIFICATION APPLICATION DATE	35
D. VERIFICATION OF EXAM SCORES FOR CERTIFICATION	35
E. RECIPROCITY REQUIREMENTS	35
F. INTERNATIONAL APPLICANTS - MUTUAL RECOGNITION AGREEMENT (MRA)	36
G. INTERNATIONAL APPLICANTS – NO MUTUAL RECOGNITION AGREEMENT (MRA)	36
1.9 CERTIFICATE REQUIREMENTS, DISCIPLINE, MAINTENANCE, AND STATUS CHANGES	36
A. GENERAL INFORMATION	36
B. NOTICES	37
C. NAMES	38
D. OFFERING SERVICES VIA THE INTERNET	39
E. DISCLOSURE – LICENSEES	39
F. APPLICATION FOR BOARD ACTION	41
G. ACTIVE CERTIFICATE	41
H. INACTIVE STATUS CERTIFICATE	41
I. RETIRED STATUS CERTIFICATE	42
J. EXPIRED STATUS CERTIFICATE	42
K. REACTIVATION OF A RETIRED OR INACTIVE STATUS CERTIFICATE, AND REINSTATEMENT OF AN EXPIRED CERTIFICATE	42
L. CPE REQUIRED AFTER REACTIVATION OR REINSTATEMENT TO ACTIVE STATUS	44
M. EXCEPTIONS	44
1.10 CONTINUING PROFESSIONAL EDUCATION (CPE)	44
A. GENERAL INFORMATION	44
B. CPE STANDARDS	44
C. SUBJECT MATTER	45
D. CPE CREDIT AND RECORDS DOCUMENTATION AND RETENTION	46
E. HARDSHIP EXCEPTIONS	48
F. CPE COMPLIANCE	48
G. FAILURE TO COMPLY WITH CPE REQUIREMENTS	48
H. BOARD ACCEPTANCE OF COLORADO RULES AND REGULATIONS (CR&R) COURSES	49
1.11 PEER REVIEW REQUIREMENT	50
A. INTRODUCTION	50
B. EXEMPTION FROM PEER REVIEW	50
C. APPROVED PEER REVIEW SPONSORING ORGANIZATIONS, PROGRAMS, AND PEER REVIEW STANDARDS	50
D. PEER REVIEWER QUALIFICATIONS AND DUTIES	51
E. RETENTION OF DOCUMENTS RELATING TO PEER REVIEWS	51
F. SUBMISSION OF PEER REVIEW DOCUMENTS	52
G. EXTENSIONS FOR COMPLETING PEER REVIEWS	52
H. BOARD ACTIONS	52
I. CHANGE OF REGISTRATION STATUS – PEER REVIEW STATUS	53
J. CONFIDENTIALITY OF PEER REVIEW INFORMATION	53
K. PEER REVIEW PROGRAM OVERSIGHT COMMITTEE (PROC)	53
L. PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD (PCAOB)	53
M. PEER REVIEW REQUIREMENT	54
N. RENEWAL ATTESTATION	54
1.12 RULES OF PROFESSIONAL CONDUCT	54
A. DEFINITIONS	54
B. INDEPENDENCE	55
C. INTEGRITY AND OBJECTIVITY	55
D. COMMISSIONS, REFERRAL FEES, AND CONTINGENT FEES	57
E. PROFESSIONAL COMPETENCE AND COMPLIANCE WITH APPLICABLE TECHNICAL STANDARDS	57
F. OTHER PROFESSIONAL STANDARDS	58
G. ACTING THROUGH OTHERS	59
H. CONFIDENTIAL CLIENT AND EMPLOYER INFORMATION	59
I. ISSUING COPIES OF REPORTS, TAX RETURNS, OR OTHER DOCUMENTS	59
J. CLIENT RECORDS	60
K. SAFEGUARDING CLIENT RECORDS AND PROPERTY	61
L. SOLICITATION	61
M. INCORPORATION OF AICPA CODE OF PROFESSIONAL CONDUCT	61
N. INCORPORATION OF STANDARDS	62
1.13 DECLARATORY ORDERS (SEE SECTION 24-4-105(II), C.R.S.)	62
A. SUBJECT MATTER OF DECLARATORY ORDERS	62
B. SCOPE OF BOARD RULINGS	62
C. BOARD RULING CONSIDERATIONS	62
D. PETITION REQUIREMENTS	63
E. BOARD RULING PROCEDURES	63
F. DEFINED PARTIES	64
G. AGENCY ACTION	64
1.14 PRACTICE PRIVILEGE/MOBILITY (SEE SECTION 12-100-117(2), C.R.S.)	64
A. SCOPE OF THE PRACTICE PRIVILEGE	64
B. REQUIREMENTS	64
C. DISCIPLINE FOR HOLDERS OF THE PRACTICE PRIVILEGE	65
D. FOREIGN INDIVIDUALS	65
E. REQUIREMENT TO REPORT DISCIPLINE	65
1.15 FIRM REQUIREMENTS	66
A. FIRM REGISTRATION	66
B. CPA FIRM NAMES	66
C. NOTIFICATIONS	68
D. RENEWAL	68
E. GENERAL INFORMATION CONCERNING FIRM REGISTRATIONS	69
F. OFFERING SERVICES VIA THE INTERNET	69
G. DISCLOSURES	69

COLORADO REVISED STATUTES 202571

12-100-101 Legislative Declaration	71
12-100-102 Applicability of Common Provisions	71
12-100-103 Definitions	71
12-100-104 State Board of Accountancy – Subject to Termination	71
12-100-105 Powers and Duties of the Board	72
12-100-106 Fees	72
12-100-107 Certificate of Certified Public Accountant – Issuance – Renewal – Reinstatement – Rules	72
12-100-108 Educational and Experience Requirements – Rules	73
12-100-109 Examinations – Reexaminations – Rules	73
12-100-110 Approval of Schools	73
12-100-111 Issuance of Certificate by Reciprocity or by Passing Examination of Another State	73
12-100-112 Use of the Title "Certified Public Accountant"	73
12-100-113 Status – Retired – Inactive	74
12-100-114 Partnerships, Professional Corporations, and Limited Liability Companies Composed of Certified Public Accountants – Registration – Rules – Definitions	74
12-100-115 Continuing Education	75
12-100-116 Unlawful Acts – Definition	75
12-100-117 Exceptions – Acts not Prohibited – Rules	75
12-100-118 Single Act Evidence of Practice	76
12-100-120 Grounds for Disciplinary Action – Administrative Penalties	76
12-100-121 Response to Board Communication	76
12-100-122 Revocation or Suspension of Partnership, Professional Corporation, or Limited Liability Company Registration	76
12-100-123 Hearings before Board – Notice – Procedure – Review	76
12-100-124 Investigations – Findings – Board Actions – Confidentiality of Complaints	76
12-100-125 Judicial Review	76
12-100-126 Reconsideration and Review of Action of Board	77
12-100-127 Unauthorized Practice - Penalties	77
12-100-128 Ownership of Accountant's Working Papers	77
12-100-129 Ownership of State Auditor's Work Papers	77

POLICY STATEMENTS OF THE COLORADO STATE BOARD OF ACCOUNTANCY78

Application Processing	78
Certificates	78
Examinations	78
Continuing Education	79
Complaints	79
Grounds for Denial & Sanctions	81
General	81

Review Questions87

Answers to Course Questions88

Glossary92

Index94

Course Details

Author: Steven M. Bragg, CPA

Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.

Publication/Revision Date: 12/14/2025

Course Exam Questions (online): 20 (multiple-choice)

Program Delivery Method: NASBA QAS Self-Study

Available Formats of Course Text: Downloadable PDF, Printed/Mailed

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CPA	Overview	None	None

* This program is appropriate for professionals at all organizational levels.

Sponsor ID Numbers

National Registry of CPE Sponsors I.D.: 107615

State CPA Board Sponsor ID Numbers (where applicable)

Florida Division of Certified Public Accounting: 0004761

Hawaii Board of Public Accountancy: 14003

New York State Board for Public Accountancy: 002146

Ohio Accountancy Board: CPE .51 PSR

Pennsylvania State Board of Accountancy: PX178025

Texas State Board of Public Accountancy: 009349

Learning Objectives

As a result of studying the course material, you should be able to meet the objectives listed below:

Recall the component parts of the study of ethics.
Identify the main aspects of virtue ethics.
Recall the various rationalizations used for committing fraud.
Recognize the organizational structure in which employees are pressured the most to accept the direction of management.
Specify the situations under which employees may violate their own ethical standards.
Recall the dispositions that can cause a person to engage in incorrect ethical reasoning.
Specify the requirements for certification as a CPA.
Recall the possible violations of the test administration standards.
Cite the extent of the experience requirement needed for the Board to issue a certificate.
Specify the additional certificate requirement(s) needed for those who issue attest or compilation reports.
Describe the disposition of the various types of certificates.
Identify the requirements for converting a certificate to retired status.
Recall the options available to the Board for making findings following an investigation.
Specify the enforcement procedure for subpoenas.

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