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Ethics and Professional Conduct for Texas CPAs #594826

Course Overview

Credit

Amount

CPA

Course Author: Joseph P. Helstrom, CPA Field of Study (CPA): Regulatory Ethics

Course Description

Beacon Hill Financial Educators is an approved sponsor with the Texas State Board of Public Accountancy (Sponsor ID 009349).

This course was updated on 5/26/2026.
Ethics and Professional Conduct for Texas CPAs focuses on case studies applying the spirit and intent of the Texas State Board of Public Accountancy Rules of Professional Conduct and emphasizes ethical judgment and the ethical standards of the profession.

Texas License Renewal Date
Last day of birth month annually
CPE Reporting Period
Ends on last day of the CPA’s birth month, over a three year rolling period
General Requirement
120 hours, with a minimum of 20 per year
4 hour board approved ethics course every 2 years

Table of Contents

Course Details	ii
Learning Objectives	iii
Contents	iv

Ethics Background1

Morals	1
What is Ethics?	1
The Relationship of Morals and Ethics	2

Illustrative Examples of Ethics4

Professional Ethics

Legal versus Ethical	6
Why Should We Study Professional Ethics?	7
Accounting Ethics	7
Ethical Core Foundations for CPAs	8
Other Ethical Foundations of the CPA Profession	9
Review Questions	11

Ethical Reasoning12

Case Studies: Ethical Reasoning

Ethical Dilemmas	18
Preventative Measures to Avoid Ethical Violations	19

Case Studies of Notable Ethical Lapses21

Bernard Madoff Investment Securities' Auditor	21
Phar-Mor	24
Enron	25

Case Studies of Other Ethical Lapses27

The Travel Expense Department	27
The Company with Excess Reserves	28
The Company with Undisclosed/Unrecorded Contingencies	29
The IRS Audit	30

Motivations of Ethical Lapses	32
Review Questions	33

The Texas State Board of Public Accountancy Rules of Professional Conduct34

General Provisions	34
501.51: Preamble and General Principles	34
501.52: Definitions	34
501.53: Applicability of Rules of Professional Conduct	35
Professional Standards	35
501.60: Auditing Standards	35
501.61: Accounting Principles	36
501.62: Other Professional Standards	36
501.63: Reporting Standards	37
Responsibilities to Clients	38
501.70: Independence	38
501.71: Receipt of Commission, Compensation or Other Benefit	45
501.72: Contingency Fees	45
501.73: Integrity and Objectivity	46
501.74: Competence	46
501.75: Confidential Client Communication	47
501.76: Records and Work Papers	47
501.77: Acting through Others	50
501.78: Withdrawal or Resignation	50
501.79: Transfer or Return of Files Resulting from the Sale, Transfer, Discontinuation or Acquisition of Practice	51

Review Questions52

Responsibilities to the Public	53
501.80: Practice of Public Accountancy	53
501.81: Firm License Requirements	53
501.82: Advertising	53
501.83: Firm Names	54
501.85: Complaint Notice	54
501.84: Form of Practice	54
Responsibilities to the Board/Profession	54
501.90: Discreditable Acts	54
501.91: Reportable Events	55
501.93: Responses	56
501.94: Mandatory Continuing Professional Education	57
Chapter 523: Continuing Professional Education	57

Accountants Confidential Assistance Network	59
Review Questions	60
Glossary	61
Index	62
Answers to Review Questions	63

Course Details

Author: Joseph P. Helstrom, CPA

Joe has over 30 years of experience as a CPA in both public accounting and industry with extensive experience in financial reporting and analysis, treasury, tax, information technology, legal and regulatory matters and strategic planning. After graduation from Butler University with a degree in Accounting, Joe got his start at Ernst & Young and, subsequent to that, has served as Chief Financial Officer, Director of Treasury and Tax, Controller and Manager of Financial Planning, Reporting and Analysis for several different companies.

Publication/Revision Date: May 26, 2026

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

Program Delivery Method: 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: .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:

Define ethics from an overall and professional perspective
Describe the ethical standards contained in the Texas State Board of Public Accountancy Rules of Professional Conduct

Online Book, Online Exam

Hardcopy Book, Online Exam

$49.00