Contents

Course Description. 7

Learning Objectives. 7

About the Code. 8

Preface. 9

Part 1 – Members in Public Practice. 10

Rule 1.100 Integrity and Objectivity. 13

Case Study – Married Tax Clients Divorcing. 14

1.130 Preparing and Reporting Information. 14

Case Study – Year End Adjustments and Loan Covenants. 15

Case Study – Bernard Madoff Investment Securities LLC. 16

Case Study – Phar-Mor. 18

Review Question. 20

1.200 - Independence. 21

Review Questions. 27

Rule 1.300—General Standards Rule. 29

Case Study – Audit Engagement with No Prior Experience. 30

1.310 Compliance with Standards Rule. 30

Case Study – Peer Review Discoveries. 31

1.320 Accounting Principles Rule. 31

1.400.001 Acts Discreditable Rule. 32

1.510.001 — Contingent Fees Rule. 33

1.520.001—Commissions and referral fees Rule. 34

1.600.001 —Advertising and other forms of solicitation. 36

1.700.001— Confidential client information rule. 37

1.800.001—Form of organization and name rule. 38

Review Questions. 40

Part 2 – Members in Business. 41

2.100.001 – Integrity and Objectivity Rule. 45

2.130.030 Obligation of a Member to His or Her Employer’s External Accountant. 46

2.170.010 – Pressure to Breach the Rules. 47

Case Study – Fair Finance. 47

2.300.001 — General standards rule. 48

2.310.001—Compliance with standards rule. 49

2.320.001—Accounting principles rule. 49

Case Study - The Company with Excess Reserves. 50

Case Study - The Company with Undisclosed/Unrecorded Contingencies. 51

2.400.001 Acts Discreditable Rule. 52

2.400.070 Confidential Information from employment or volunteer activities. 53

Part 3 – Other Members. 54

3.400.001 - Acts discreditable rule. 54

3.400.070 Confidential Information from employment or volunteer activities. 54

Review Questions. 56

Glossary. 57

Index. 58

CPE Exam.. 60

Answers to Review Questions. 62