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 |
| Ethical Theory | 1 |
| Utilitarianism | 2 |
| Deontology | 2 |
| Ethics of Care | 3 |
| Professional Ethics | 6 |
| The Study of Business Ethics | 6 |
| The Study of Accounting Ethics | 7 |
| Special Topics: Managing Ethics | 10 |
| Analytical Model for Ethical Decisions | 10 |
| Fiduciary Standard of Care | 11 |
| Managing Conflicts of Interest When Providing a Range of Services | 12 |
| Special Topics: Regulatory Ethics | 14 |
| Protecting Client Interests with a Practice Continuation Agreement | 14 |
| Objectives-Oriented Accounting | 15 |
| AICPA: Recent Ethics Inquiries | 18 |
| Review Questions | 22 |
Section II. AICPA Code of Professional Conduct24
| Preface: Applicability and Principles of Professional Conduct | 24 |
| Applicability | 24 |
| The AICPA Principles | 24 |
| Using the Principles in Practice | 27 |
| Part One of the AICPA Code: Members in Public Practice | 30 |
| Rules Are Not Enough | 30 |
| The Conceptual Framework Approach | 31 |
| Ethical Conflicts | 33 |
| Rules of the Code of Professional Conduct | 33 |
| Independence, Integrity, and Objectivity: The Core Values of the Accounting Profession | 33 |
| 1.100 Integrity and Objectivity Rule | 34 |
| 1.200 Independence Rule | 38 |
| 1.300 General Standards | 52 |
| 1.400 Acts Discreditable Rule | 55 |
| 1.500 Fees and Other Types of Remuneration | 58 |
| 1.600 Advertising and Other Forms of Solicitation Rule | 60 |
| 1.700 Confidential Client Information Rule | 60 |
| 1.800 Form of Organization and Name Rule | 62 |
| Case Studies | 63 |
| 1. Stop Thief! The Case of the Almost Stolen Clients | 64 |
| 2. Oops! The Case of the Harmless Mistakes | 65 |
| 3. Do You Have What It Takes? The Case of the Inadequate Accountant | 66 |
| 4. The Last Shot at the Buzzer...Too Late! The Case of the Losing Lady | 68 |
| 5. Give It Back! The Case of Empty Promises | 69 |
| Review Questions | 71 |
Section III. North Dakota Board of Accountancy73
| State Board of Accountancy | 73 |
| Statute: 43-02.2-01 Purpose | 73 |
| Statute: 43-02.2-02 Definitions | 73 |
| Statute: 43-02.2-03. State Board of Accountancy | 74 |
| Statute: 43-02.2-04. Certified Public Accountants | 76 |
| Statute: 43-02.2-04.1. Substantial Equivalency | 78 |
| Statute: 43-02.2-06. Permits to Practice - Firms | 78 |
| Statute: 43-02.2-07. Licensed Public Accountants and Firms of Public Accountants | 79 |
| Ethics, Firm Ownership, and Firm Review | 80 |
| Rule: 3-01-03-01. Code of Ethics | 80 |
| Rule: 3-01-03-02. Firm Ownership | 80 |
| Rule: 3-01-03-03. Firm Review | 80 |
| Working Papers, Client Records | 81 |
| Statute: 43-02.2-17. Licensee Working Papers - Client Records | 81 |
| Continuing Education: Basic Requirements | 81 |
| 3-03-01-01. Credit-hours required. | 81 |
| Rules: 3-03-01-02. How Credits are Determined | 82 |
| Rule: 3-03-01-04. Exceptions | 82 |
| Enforcement | 82 |
| Statute: 43-02.2-09. Enforcement Against Licensees | 82 |
| Statute: 43-02.2-12. Unlawful acts | 83 |
| Statute: 43-02.2-16. Confidential Communications | 85 |
| Review Questions | 86 |
Appendix I. AICPA Glossary87
Appendix II. Answers and Explanations to Review Questions99
| Section I. Current Ethical Issues in the Accounting Profession | 99 |
| Section II. AICPA Code of Professional Conduct | 102 |
| Section III. North Dakota Board of Accountancy | 107 |
Index109
Endnotes111
Course Details
Author: Beacon Hill Financial Educators
Publication/Revision Date: 12/18/2025
Course Exam Questions(online): 30 (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:
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. North Dakota Board of Accountancy- Recall the purpose and responsibilities of the North Dakota State Board of Accountancy.
- Recognize the primary requirements and procedures for renewal of North Dakota individual licenses and firm permits.
- Recognize the rules for firm ownership and the requirements for firm review.
- Recall the continuing professional education requirements for licensees.
- Define the enforcement procedures of the Board with respect to violations of the rules by licensees and firms.
- Understand the rules with respect to unlawful acts and client communications.
