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 |
| Special Topics: Managing Ethics | 1 |
| Analytical Model for Ethical Decisions | 1 |
| Fiduciary Standard of Care | 2 |
| Managing Conflicts of Interest When Providing a Range of Services | 3 |
| Special Topics: Regulatory Ethics | 6 |
| Objectives-Oriented Accounting | 6 |
| AICPA: Recent Ethics Inquiries | 9 |
| Campaign Contributions | 9 |
| Disclosure of Commissions | 9 |
| Independent Contractors | 10 |
| Pro Bono/Below Cost Fees | 10 |
| Transfer of Client Files to Another Partner in the Firm | 11 |
| Electronic Records | 11 |
| Review Questions | 13 |
Section II. AICPA Code of Professional Conduct14
| Overview of the AICPA Code of Professional Conduct | 14 |
| Applicability | 14 |
| Principles of Professional Conduct | 14 |
| Rules Are Not Enough | 14 |
| The Conceptual Framework Approach | 16 |
| Identifying Ethical Conflicts | 18 |
| The AICPA Principles | 18 |
| ET Section 0.300.010 - Preamble | 18 |
| ET Section 0.300.020 - Responsibilities | 19 |
| ET Section 0.300.030 - The Public Interest | 19 |
| ET Section 0.300.040 - Integrity | 19 |
| ET Section 0.300.050 - Objectivity and Independence | 19 |
| ET Section 0.300.060 – Due Care | 19 |
| ET Section 0.300.070 – Scope and Nature of Services | 19 |
| Using the Principles in Practice | 19 |
| Independence, Integrity, and Objectivity: The Core Values of the Accounting Profession | 22 |
| Rules of the Code of Professional Conduct | 22 |
| 1.100 Integrity and Objectivity | 23 |
| Conflicts of Interest | 23 |
| 1.200 Independence | 25 |
| 1.300 General Standards | 25 |
| 1.400 Acts Discreditable | 27 |
| 1.500 Fees and Other Types of Remuneration | 27 |
| Contingent Fees Rule | 27 |
| Commissions and Referral Fees Rule | 28 |
| 1.600 Advertising and Other Forms of Solicitation | 28 |
| 1.700 Confidential Client Information | 29 |
| 1.800 Form of Organization and Name | 29 |
| Review Questions | 30 |
Section III. New York State Education Department, State Board for Public Accountancy31
| About Office of the Professions | 31 |
| Professional Regulation in New York State | 31 |
| Licensure and Registration | 31 |
| Professional Discipline | 31 |
| Public and Professional Education and Information | 31 |
| New York's Professional Discipline System | 32 |
| New York State Education Law | 33 |
| Article 149: Public Accountancy | 33 |
| § 7400. Introduction. | 33 |
| § 7401. Definition of practice of public accountancy. | 33 |
| §7401-a. Definitions. | 33 |
| § 7402. Practice of public accountancy and use of title "certified public accountant" or "public accountant". | 34 |
| § 7403. State board for public accountancy. | 34 |
| § 7404. Requirements for a license as a certified public accountant. | 35 |
| § 7405. Requirements for a license as a public accountant. | 35 |
| § 7406. Limited permits. | 36 |
| § 7407. Exempt persons. | 36 |
| § 7408. Special provisions. | 37 |
| § 7409. Mandatory continuing education. | 38 |
| §7410. Mandatory peer review. | 40 |
| Rules of the Board of Regents | 41 |
| Role of the New York Board of Regents | 41 |
| § 29.1 General Provisions. | 42 |
| § 29.10 Special Provisions for the Profession of Public Accountancy. | 45 |
| A. Unprofessional Conduct | 45 |
| B. Income Sharing. | 57 |
| C. Unauthorized Disclosure of Client Information. | 58 |
| D. Applicability to Firms. | 60 |
| E. Reportable Events. | 60 |
| F. Unprofessional Conduct in the Practice of Public Accountancy Shall Include: | 62 |
| G. Audit in the Practice of Public Accountancy of an Issuer of Publicly Traded Securities. | 63 |
| H. Practice Privilege. | 63 |
| I. Commissions | 63 |
| Review Questions | 66 |
Appendix I Regulations of the Commissioner of Education: Part 70, Public Accountancy67
| §70.1 Definition of practice of public accountancy. | 67 |
| §70.2 Professional study of public accountancy | 68 |
| §70.3 Experience requirements. | 69 |
| §70.4 Licensing examinations | 70 |
| §70.5 Licensure by Endorsement | 71 |
| §70.6 Limited Permits | 73 |
| §70.7 Practice by Certain Out-of-State Individuals and Firms | 74 |
| §70.8 Registration of a firm. | 77 |
| §70.9 Continuing Education. | 79 |
| §70.10 Mandatory peer review program. | 84 |
Appendix II Full Text of Article 149, Sections 7400 Through 741091
| § 7400. Introduction. | 91 |
| § 7401. Definition of practice of public accountancy. | 91 |
| §7401-a. Definitions. | 91 |
| § 7402. Practice of public accountancy & use of title "certified public accountant" or "public accountant" | 92 |
| § 7403. State board for public accountancy. | 93 |
| § 7404. Requirements for a license as a certified public accountant. | 93 |
| § 7405. Requirements for a license as a public accountant. | 94 |
| § 7406. Limited permits. | 94 |
| § 7407. Exempt persons. | 97 |
| § 7408. Special provisions. | 98 |
| § 7409. Mandatory continuing education. | 101 |
| §7410. Mandatory peer review. | 103 |
Appendix III. AICPA Glossary105
Appendix IV. Answers and Explanations to Review Questions118
| Section I. Current Ethical Issues in the Accounting Profession | 118 |
| Section II. AICPA Code of Professional Conduct | 120 |
| Section III. New York State Education Department, State Board for Public Accountancy | 122 |
Index126
Endnotes127
Course Details
Author: Beacon Hill Financial Educators
Publication/Revision Date: 12/8/2025
Course Exam Questions (online): 20 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: PDF or PDF plus printed copy sent in the mail
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:
- 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.
- Recognize the primary components that serve as the foundation of the AICPA ethical standards.
- Differentiate between the AICPA Principles of the Code of Professional Conduct.
- Recognize the requirements for practicing public accountancy in New York.
- Recognize the general provisions of the Rules of the Board of Regents.
