Table of Contents
Section I. Current Ethical Issues in the Accounting Profession1
| Understanding Ethics | 1 |
| A Definition of Ethics | 1 |
| How do you act when no one is looking? | 1 |
| Professional Ethics | 2 |
| The Study of Business Ethics | 2 |
| The Study of Accounting Ethics | 3 |
| Special Topics: Managing Ethics | 7 |
| Analytical Model for Ethical Decisions | 7 |
| Fiduciary Standard of Care | 8 |
| Managing Conflicts of Interest When Providing a Range of Services | 9 |
| Special Topics: Regulatory Ethics | 12 |
| Objectives-Oriented Accounting | 12 |
| AICPA: Recent Ethics Inquiries | 16 |
| Review Questions | 21 |
Section II. AICPA Code of Professional Conduct23
| Preface: Applicability and Principles of Professional Conduct | 23 |
| Applicability | 23 |
| The AICPA Principles | 23 |
| Using the Principles in Practice | 27 |
| Part One of the AICPA Code: Members in Public Practice | 32 |
| Rules Are Not Enough | 32 |
| The Conceptual Framework Approach | 34 |
| Ethical Conflicts | 36 |
| Rules of the Code of Professional Conduct | 37 |
| Independence, Integrity, and Objectivity: The Core Values of the Accounting Profession | 37 |
| 1.100 Integrity and Objectivity Rule | 37 |
| 1.200 Independence Rule | 42 |
| 1.300 General Standards | 60 |
| 1.400 Acts Discreditable Rule | 64 |
| 1.500 Fees and Other Types of Remuneration | 68 |
| 1.600 Advertising and Other Forms of Solicitation Rule | 71 |
| 1.700 Confidential Client Information Rule | 72 |
| 1.800 Form of Organization and Name Rule | 74 |
| Case Studies | 76 |
| 1. Stop Thief! The Case of the Almost Stolen Clients | 77 |
| 2. Oops! The Case of the Harmless Mistakes | 78 |
| 3. Do You Have What It Takes? The Case of the Inadequate Accountant | 80 |
| 4. The Last Shot at the Buzzer...Too Late! The Case of the Losing Lady | 82 |
| Review Questions | 85 |
Section III. Summary of Minnesota Statutes and Board of Accountancy Rules87
| Terminology | 87 |
| Definitions of Terminology used in the Minnesota Statutes (326A.01) | 87 |
| Definitions of Terminology used in the Minnesota Board of Accountancy Rules (1105.0100). | 89 |
| Minnesota State Board of Accountancy. | 91 |
| State Board of Accountancy | 91 |
| Powers of the Board | 92 |
| Rules Adopted by the Board | 92 |
| Interacting with the Board | 94 |
| Individual Licensing and Renewal | 95 |
| Certificate Issuance and Renewal; Competency Standard | 95 |
| Exemption from Certificate Renewal Requirement while Exempt or Retired. | 96 |
| Mobility | 97 |
| Continuing Professional Education Requirements. | 103 |
| Requirements | 103 |
| Continuing Professional Education Programs | 105 |
| Continuing Professional Education Reporting and Records | 108 |
| Exception to Continuing Professional Education Requirement | 109 |
| Firms Permits | 110 |
| Permit to Practice as a CPA Firm | 110 |
| Application Requirements for Firm Permit | 112 |
| Notifying Board of Changes | 114 |
| Headquarters Location of Client | 115 |
| Internet Practice | 116 |
| Peer Review | 116 |
| Terminology. | 116 |
| Peer Review as a Condition for Renewal of Permit | 116 |
| Peer Review: Applicability | 117 |
| Peer Review Standards | 119 |
| Peer Review: Report to Board | 121 |
| Peer Review Material: Private Data | 122 |
| Code of Professional Conduct | 122 |
| Acts Discreditable | 122 |
| Confidential Communications | 128 |
| Working Papers; Clients' Records | 128 |
| Retention and Content of Audit and Other Attestation Services Documentation | 129 |
| Enforcement | 131 |
| Grounds for Enforcement Action | 134 |
| Misleading CPA Firm Names | 136 |
| Fictitious Firm Names | 138 |
| Safe Harbor Language | 140 |
| Registered Accounting Practitioner (RAP) | 140 |
| Registration Requirements (RAP) | 140 |
| Review Questions | 143 |
Appendix I. AICPA Glossary146
Appendix II. Answers and Explanations to Review Questions161
| Section I. Current Ethical Issues in the Accounting Profession | 161 |
| Section II. AICPA Code of Professional Conduct | 164 |
| Section III. Minnesota Board of Accountancy | 169 |
Index176
Endnotes178
Course Details
Author: Beacon Hill Financial Educators
Publication/Revision Date: 11/21/2025
Course Exam Questions (online): 40 (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 ID: 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:
Section I. Current Ethical Issues in the Accounting Profession- Define ethics in the context of being ethical versus acting ethically.
- Identify the types of accounting services in which the fiduciary standard applies.
- Recognize the circumstances under which conflicts of interest can arise when a variety of accounting services are offered by a CPA or firm.
- Differentiate between rules-based, principles-based, and objectives-oriented accounting.
- Interpret recent ethical inquires received by the AICPA.
Section II. AICPA Code of Professional Conduct- Recognize the primary components that serve as the foundation of the AICPA ethical standards.
- Distinguish between the AICPA Principles of Professional Conduct.
- Distinguish between the AICPA Rules of the Code of Professional Conduct.
Section III. Minnesota Board of Accountancy- Define the key terminology used in the Statutes and Rules.
- Recognize the primary requirements and procedures for renewal of Minnesota individual licenses and firm permits.
- Define the enforcement procedures of the Board with respect to violations of the rules by licensees and firms.
- Define the continuing professional education requirements for licensees.
- Recognize the requirements for peer review.
- Define the rules with respect to professional conduct.
