Table of Contents

 

Chapter 1 - Professional Ethics for Iowa CPAs - Section 1. 10

Ethics Background. 10

Morals. 10

What is Ethics?. 10

The Relationship of Morals and Ethics. 11

Illustrative Examples of Ethics. 12

Professional Ethics. 14

Legal versus Ethical 14

Why Should We Study Professional Ethics?. 14

Accounting Ethics. 15

Ethical Core Foundations for CPAs. 15

Chapter 1 - Section 1 Review Questions. 17

Chapter 1 - Professional Ethics for Iowa CPAs - Section 2. 18

Ethical Reasoning. 18

Case Studies – Threats and Safeguards. 19

Ethical Dilemmas. 21

Public Expectations of the CPA’s Responsibility. 21

Enron and Arthur Andersen. 22

Bernard Madoff Investment Securities LLC – Failures in Expressing an Opinion on Financial Statements  23

Phar-Mor. 25

Motivations of Ethical Lapses. 26

Chapter 1 - Section 2 Review Questions. 27

Chapter 1 - Professional Ethics for Iowa CPAs - Section 3. 28

Chapter 13—Iowa Administrative Code Section 193A—Rules of Professional Ethics and Conduct 28

193A—13.1(542) Applicability. 28

193A—13.2(542) Rules applicable to all CPAs and LPAs. 29

193A—13.3(542) Rules applicable to CPAs and LPAs who use the titles in offering or rendering products or services to clients. 30

193A—13.4(542) Audit, review and other attest services. 31

193A—13.5(542) Compilation. 32

193A—13.6(542) Rules applicable to tax practice. 32

Chapter 14—Iowa Administrative Code Section 193A—Disciplinary Authority and Grounds for Discipline  33

193A—14.1(17A,272C,542) Disciplinary authority. 33

193A—14.2(17A,272C,542) Disciplinary policy. 33

193A—14.3(17A,272C,542) Grounds for discipline. 34

Chapter 11—Iowa Administrative Code Section 193A—Peer Review.. 37

193A—11.1(542) Peer review required. 37

193A—11.2(542) How often required. 37

193A—11.3(542) System of internal quality control 38

193A—11.4(542) Peer review programs that qualify. 38

193A—11.5(542) Waiver of peer review requirement 38

193A—11.6(542) Submission of peer review reports. 38

Chapter 10, Part 7—Iowa Administrative Code Section 193A—Continuing Education. 38

193A—10.7(542) Mandatory education required. 38

Case Studies. 40

Competence. 40

Board Complaint 40

Peer Review.. 41

Chapter 1 - Section 3 Review Questions. 42

Chapter 1 - Professional Ethics for Iowa CPAs - Section 4. 43

The AICPA Code of Professional Conduct 43

About the Code. 43

Preface. 43

Part 1 – Members in Public Practice. 44

Rule 1.100 Integrity and Objectivity. 46

Case Study – Married Tax Clients Divorcing. 47

1.130 Preparing and Reporting Information. 48

Case Study – Year End Adjustments and Loan Covenants. 49

1.200 - Independence. 49

Chapter 1 - Section 4 Review Questions. 54

Chapter 1 - Professional Ethics for Iowa CPAs - Section 5. 55

Rule 1.300—General Standards Rule. 55

Case Study –Audit Engagement with No Prior Experience. 56

1.310 Compliance with Standards Rule. 56

Case Study – Peer Review Discoveries. 56

1.320 Accounting Principles Rule. 57

1.400.001 Acts Discreditable Rule. 57

1.510.001 —ContingentFees Rule. 58

1.520.001—Commissions and referral fees Rule. 60

1.600.001 —Advertising and other forms of solicitation. 61

1.700.001—Confidential client information rule. 61

1.800.001—Form of organization and name rule. 63

Chapter 1 - Section 5 Review Questions. 64

Chapter 1 - Professional Ethics for Iowa CPAs - Section 6. 65

Part 2 – Members in Business. 65

2.100.001 – Integrity and Objectivity Rule. 68

2.130.030 Obligation of a Member to His or Her Employer’s External Accountant 69

Case Study – Fair Finance. 69

2.300.001 — General standards rule. 70

2.310.001—Compliance with standards rule. 71

2.320.001—Accounting principles rule. 71

Case Study - The Company with Excess Reserves. 72

Case Study - The Company with Undisclosed/Unrecorded Contingencies. 72

2.400.001 Acts Discreditable Rule. 73

2.400.070 Confidential Information from employment or volunteer activities. 74

Part 3 – Other Members. 74

3.400.001 - Acts discreditable rule. 74

3.400.070 Confidential Information from employment or volunteer activities. 75

Answers to Review Questions. 76

Chapter 1 - Section 1 Review Questions Feedback. 76

Chapter 1 - Section 2 Review Questions Feedback. 77

Chapter 1 - Section 3 Review Questions Feedback. 78

Chapter 1 - Section 4 Review Questions Feedback. 80

Chapter 1 - Section 5 Review Questions Feedback. 83

Glossary. 85

Index. 87

Final Examination. 89

CPASelfstudy.com Course Evaluation. 93