| State Board of CPAs of Louisiana: Professional Conduct | 6 |
| Introduction | 6 |
| Rule LA §1700 General | 6 |
| Rule LA §1707. Other Responsibilities and Practices: Communication, Applicability, and | |
| Cooperation (§1707 D, E, F) | 7 |
| Louisiana Rules, AICPA Rules: The More Restrictive Rules Apply | 8 |
| AICPA Rule 0.100.020 Interpretations and Other Guidance | 8 |
| AICPA Code of Professional Conduct | 9 |
| Introduction | 9 |
| The AICPA Principles | 9 |
| ET Section 0.300.010 - Preamble | 9 |
| ET Section 0.300.020 - Responsibilities Principle | 10 |
| ET Section 0.300.030 - The Public Interest Principle | 10 |
| ET Section 0.300.040 – Integrity Principle | 10 |
| ET Section 0.300.050 - Objectivity and Independence Principle | 10 |
| ET Section 0.300.060 – Due Care Principle | 10 |
| ET Section 0.300.070 – Scope and Nature of Services Principle | 10 |
| Using the Principles in Practice | 10 |
| AICPA and Louisiana Rules Applicable in Public Practice or in Business | 14 |
| Rules Are Not Enough | 14 |
| The Conceptual Framework Approach | 14 |
| Examples of Threats to Compliance of AICPA Rules in Public Practice and Non-Public Practice | |
| (Business) | 15 |
| Identifying Ethical Conflicts | 19 |
| Examples of Ethical Conflicts in Public Practice and Non-Public Practice (Business) | 19 |
| AICPA Rule 1.100 — Integrity and Objectivity | 21 |
| Case Study: Ethical Issue Relating to Integrity and Objectivity | 21 |
| Summary of Interpretations | 21 |
| Conflicts of Interest | 21 |
| Examples of Situations in Which Conflicts of Interest May Arise in Public Practice and Non-Public Practice | |
| (Business) | 23 |
| Identifying a Conflict of Interest | 23 |
| Evaluating the Significance of the Threat Created by a Conflict of Interest | 23 |
| Examples of Safeguards to Apply to Eliminate or Reduce the Threat Created by a Conflict of Interest in | |
| Public Practice and Non-Public Practice (Business) | 24 |
| Disclosure of a Conflict of Interest and Obtaining Consent to Undertake the Service | 25 |
| Circumstances in which Conflicts of Interest Can Pose a Threat to Integrity and Objectivity in Public | |
| Practice and Non-Public Practice (Business) | 26 |
| Conflict of Interest Threats Applicable Specifically to Members in Public Practice | 29 |
| Case Study -Conflicts of Interest | 31 |
| AICPA Rule 1.300 – General Standards | 32 |
| Interpretations Under the General Standards Rule | 32 |
| Professional Competence | 33 |
| Case Study: Competence and Other General Standards | 33 |
| Submission of Financial Statements | 33 |
| State Board of CPAs of Louisiana Rule: Competence and Professional Standards (§1703 (A, B, C)) | 34 |
| Compliance with Standards Rule | 35 |
| Accounting Principles Rule | 35 |
| Summary of Interpretations | 35 |
| AICPA Rule 1.400 – Acts Discreditable | 36 |
| Interpretations Under the Acts Discreditable Rule | 36 |
| Acts That Would Be Deemed Discreditable | 36 |
| False, Misleading, or Deceptive Acts in Promoting or Marketing Professional Services | 37 |
| Use of the CPA Credential | 37 |
| Case Study: Acts Discreditable | 38 |
| Interpretations of the Acts Discreditable Rule Applicable Specifically to Members in Public Practice | 39 |
| Louisiana Statute: Working Papers (§37:87) | 40 |
| Interpretations of the Acts Discreditable Rule Applicable Specifically to Members in Business | 41 |
| State Board of CPAs of Louisiana Rule: Acting Through Others (§1707(A)(1)) | 43 |
| AICPA and Louisiana Rules Applicable in Public Practice Only | 46 |
| AICPA Rule 1.200 – Independence | 46 |
| What Is Independence? | 46 |
| When Independence is Required | 46 |
| When Independence is not Required | 46 |
| When Independence is Impaired | 47 |
| Case Study: Is Independence Impaired? | 47 |
| Conceptual Framework for Analyzing Threats to Independence | 48 |
| Independence Rule as it Applies to Covered Members | 49 |
| AICPA Independence Rule as it Applies to Non-Covered Members | 50 |
| AICPA Rule 1.500 – Fees and Other Types of Remuneration | 51 |
| Contingent Fees Rule | 51 |
| Louisiana Statute §37:83 (L): Contingent and Referral Fees | 51 |
| Examples of Instances Where a Contingent Fee Would Be Permitted: | 52 |
| Case Study: Contingent Fees | 52 |
| Louisiana Statute §37:83 (L)(1)(b): Contingent Fees | 52 |
| Commissions and Referral Fees Ruling | 53 |
| Disclosure of Permitted Commissions | 53 |
| Disclosure of Referral Fees | 53 |
| Summary of Other Interpretations | 53 |
| Louisiana Statute §37:83 (K): Commissions | 54 |
| AICPA Rule 1.600 – Advertising and Other Forms of Solicitation | 54 |
| Summary of Interpretations | 54 |
| State Board of CPAs of Louisiana Rule: Use of the “CPA Inactive” Designation (§1707(B) | 55 |
| AICPA Rule 1.700 – Confidential Client Information | 56 |
| Examples of AICPA ethical rulings with respect to client confidentiality | 56 |
| Case Study: Confidential Client Information Rule | 57 |
| Louisiana Statute §37:86: Confidential Communications | 57 |
| AICPA Rule 1.800 – Form of Organization and Name | 58 |
| Summary of Interpretations | 58 |
| Owners of a Separate Business | 59 |
| Case Study: Usage of Individual and Firm Names | 59 |
| State Board of CPAs of Louisiana Rule: Firm Name (§1707(C)(1, 3) | 60 |
| Alternative Practice Structures | 60 |
| Review Questions | 61 |
