Table of Contents

Learning Assignments and Objectives  iv

Table of Contents  v

I. Mississippi State Board of Public Accountancy Administrative Rules and Regulations  1

Chapter 1 Restrictions on Use of the Title Certified Public Accountant  1

Rule 1.1. Restrictions  1

Rule 1.2. Violations  1

Chapter 2. License Registration and Renewal 2

Rule 2.3. Registration   2

Rule 2.4. Reinstatement of a License   2

Rule 2.5. Retirement Status or Permanent Disability  4

Rule 2.6. Reciprocity  4

Rule 2.7. Replacement Certificate of Licensure   5

Chapter 3. CPA Firm Permits-General Requirements  6

Rule 3.1. General Requirements  6

Rule 3.2. Reinstatement of a CPA Firm Permit  11

Review Questions  12

II. Professional Conduct  13

Introduction   13

A Definition of Ethics  13

How Do You Act When No One Is Looking?  13

Ethics in the Accounting Profession   14

AICPA Principles of Professional Conduct  14

Independence, Integrity, and Objectivity: The Core Values of the Accounting Profession   14

Using Principles in Practice   14

The Principles of the AICPA Code of Professional Conduct  14

Rules of Professional Conduct  16

Introduction   16

AICPA Conceptual Framework Approach for Members in Public Practice   16

Ethical Conflicts  17

Mississippi State Board of Public Accountancy Preamble to the Rules  18

MS Rule 6.1. Preamble   18

Mississippi Board and the AICPA: The Independence Rule   19

MS Rule 6.2. Independence. 19

AICPA Rule on Independence  21

Integrity and Objectivity  36

MS Rule 6.3. Integrity  36

MS  Rule 6.4. Objectivity  36

AICPA Rule on  Integrity and Objectivity  37

Solicitation, Advertising, and Public Communication   41

MS Rule 6.5. Solicitation, Advertising and Public Communication   41

AICPA Rules on Advertising and Other Forms of Solicitation   42

Fees and Other Types of Remuneration   43

MS Rule 6.6. Commissions  43

MS Rule 6.7. Contingent Fees  44

AICPA Rules on Fees and Other Types of Remuneration   44

Compliance with Professional Standards and Accounting Principles  47

MS Rule 6.8. Competence   47

MS Rule 6.9. Auditing Standards  47

MS Rule 6.10. Accounting Principles  48

MS Rule 6.11. Other Professional Standards  48

AICPA Compliance with General and Professional Standards and Accounting Principles  48

Records and Client Confidential Information   52

MS Rule 6.12 Confidential Client Information   52

MS Rule 6.13 Records  52

AICPA Confidential Client Information and Records Rules  53

Discreditable Conduct  56

MS Rule 6.14. Discreditable Conduct  56

MS Rule 6.15. Discipline by Federal and State Authorities  57

MS Rule 6.17. Prohibited Acts  57

MS Rule 7.1. Disciplinary Actions  58

AICPA Rule on Acts Discreditable   59

Form of Practice   59

MS Rule 6.16. Form of Practice   59

AICPA  Rule on Form of Organization and Firm Name   59

Review Questions  62

III. Case Studies  65

1. Oops! The Case of the Harmless Mistakes  65

2. Do You Have What It Takes? The Case of the Inadequate Accountant  66

3. Stop Thief! The Case of the Almost Stolen Clients  68

IV. Glossaries (AICPA, MSBOA) 70

AICPA ET Section 92: Definitions  70

Mississippi State Board of Public Accountancy:  Definitions (Chapter 10)  83

Answers and Explanations to Review Questions  87

Section I.  Mississippi State Board of Public Accountancy  87

Section II.  Professional Conduct  87

CPE Exam – Ethics for CPAs- Mississippi 95

Appendix  99

Mississippi Public Accountancy Statutes  99

§ 73-33-1 CPA license; CPA firm permit requirements  99

§ 73-33-2  Definitions  100

§ 73-33-3  Board of Public Accountancy; composition; appointment of members; meetings  101

§ 73-33-5 Powers and duties of board; examinations; standards of practice   102

§ 73-33-7 CPA license and CPA firm permit registration; registration fees  103

§ 73-33-8 Payment and deposit in state treasury  104

§ 73-33-9 Applicants of other states  105

§ 73-33-11 Revocation, cancellation, or suspension of licenses and permits  105

§ 73-33-12 Proceedings, records and work papers of independent review committee privileged   107

§ 73-33-13 Criminal penalties for false representation or practice without CPA license, firm permit  108

§ 73-33-15 Restrictions and criminal penalties for violations; exceptions  108

§ 73-33-16 Ownership of working papers; confidential and privileged information   109

§ 73-33-17 Temporary and incident practice exceptions to reciprocity  110

§ 73-33-18 Disclaimer report language by persons not subject to this chapter  112

Mississippi State Board of Public Accountancy Rules and Regulations (Not Covered in Section I)  112

Chapter 2. Licenses: Requirements  112

Rule  2.1. Requirements  112

Rule 2.2. CPA Examination   114

Chapter 4. Continuing Professional Education (CPE)  119

Rule 4.1. Compliance Requirements  119

Rule 4.2. Records and Reporting  121

Rule 4.3. Qualifying Programs  121

Rule 4.4. Program Sponsors and Presentation Standards  123

Rule 4.5. Disciplinary Actions Relating to CPE  125

Chapter 5. Compliance Assurance Program    125

Rule 5.1. Purpose   125

Rule 5.2. Definitions  126

Rule 5.3 Compliance Assurance   127

Rule 5.4. Reporting to the Board   128

Rule 5.5. Effect of Consecutive Deficient Reports  128

Rule 5.6. Requirements of Sponsoring Organizations’ Peer Review Programs  129

Rule 5.7. Board Oversight  131

Rule 5.8. Investigations  133

Chapter 8. Mississippi State Board of Public Accountancy  133

Rule 8.1. Appointments  133

Rule 8.2. Meetings, Organization, and Duties  133

Rule 8.3. Employees  134

Chapter 9. Administrative Procedures Rules  135

I. Method of Operation   135

II. Oral Proceedings on Proposed Rules  136

Rule 9.3. Declaratory Opinions  138

Index  142

Endnotes  143