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 |
| Ethical Dilemmas in Accounting | 7 |
| Special Topics: Managing Ethics | 8 |
| Analytical Model for Ethical Decisions | 8 |
| Fiduciary Standard of Care | 9 |
| Managing Conflicts of Interest When Providing a Range of Services | 10 |
| Third-Party Verification Letter Requests | 12 |
| Special Topics: Regulatory Ethics | 14 |
| Objectives-Oriented Accounting | 14 |
| AICPA: Recent Ethics Inquiries | 17 |
| 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 | 31 |
| Rules Are Not Enough | 31 |
| The Conceptual Framework Approach | 32 |
| Ethical Conflicts | 35 |
| Rules of the Code of Professional Conduct | 36 |
| Independence, Integrity, and Objectivity: The Core Values of the Accounting Profession | 36 |
| 1.100 Integrity and Objectivity Rule | 36 |
| 1.200 Independence Rule | 41 |
| 1.300 General Standards | 57 |
| 1.400 Acts Discreditable Rule | 60 |
| 1.500 Fees and Other Types of Remuneration | 63 |
| 1.600 Advertising and Other Forms of Solicitation Rule | 66 |
| 1.700 Confidential Client Information Rule | 66 |
| 1.800 Form of Organization and Name Rule | 69 |
| Case Studies | 70 |
| 1. Stop Thief! The Case of the Almost Stolen Clients | 71 |
| 2. Oops! The Case of the Harmless Mistakes | 72 |
| 3. Do You Have What It Takes? The Case of the Inadequate Accountant | 74 |
| 4. The Last Shot at the Buzzer...Too Late! The Case of the Losing Lady | 75 |
| Review Questions | 78 |
Section III. Summary of Rhode Island Statutes and Regulations80
| Board of Accountancy | 80 |
| Policy and Purpose, Definitions | 80 |
| Policy and Purpose | 80 |
| Definitions | 81 |
| Permits, Peer Review | 83 |
| Permits for Public Accountants and Certified Public Accountants | 83 |
| Permits for Practice Units | 84 |
| Peer Review Program | 85 |
| Professional Conduct | 86 |
| Code of Professional Conduct | 86 |
| Acts Declared Unlawful | 86 |
| Acts Not Prohibited – Exceptions | 89 |
| Continuing Professional Education Requirements | 90 |
| CPE Requirement | 90 |
| Frequently Asked Questions | 93 |
| Review Questions | 95 |
Appendix I. AICPA Glossary (.0400)96
Appendix II. Answers and Explanations to Review Questions108
| Section I. Current Ethical Issues in the Accounting Profession | 108 |
| Section II. AICPA Code of Professional Conduct | 112 |
| Section III. Rhode Island Board of Accountancy | 116 |
Index118
Endnotes120
Course Details
Author: Beacon Hill Financial Educators
Publication/Revision Date: 12/31/2025
Course Exam Questions (online): 30 (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:
Section I. Current Ethical Issues in the Accounting Profession- Define ethics in the context of being ethical versus acting ethically.
- Differentiate between being ethical and acting ethically.
- Recognize the ethical conflicts that exist in the business environment.
- Differentiate between utilitarianism and deontology.
- Explain how the ethics of care helps one differentiate between right and wrong.
- 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. Rhode Island Board of Accountancy- Define the key terminology used in the Rhode Island Statutes and Regulations.
- Recognize the primary requirements and procedures for renewal of Rhode Island individual licenses and firm (practice unit) permits.
- Recognize the requirements for peer review.
- Define the rules with respect to professional conduct.
- Define the continuing professional education requirements for licensees.
