Table of Contents

Chapter 1 - Kentucky Professional Ethics - Section 1. 8

Ethics Background. 8

Morals. 8

What is Ethics?. 8

The Relationship of Morals and Ethics. 9

Professional Ethics. 10

Legal versus Ethical 11

Why Should We Study Professional Ethics?. 11

Accounting Ethics. 11

Ethical Core Foundations for CPAs. 12

Ethical Reasoning. 13

Case Studies – Threats and Safeguards. 14

Ethical Dilemmas. 16

Chapter 1 - Section 1 Review Questions. 17

Chapter 1 - Kentucky Professional Ethics - Section 2. 18

201 KAR 1:300. Rules of professional conduct. 18

Kentucky Revised Statutes Chapter 325, Sections 420 and 440. 22

Case Study – Contingent Fees. 23

The AICPA Code of Professional Conduct 23

About the Code. 23

Preface. 24

Part 1 – Members in Public Practice. 25

Rule 1.100 Integrity and Objectivity. 26

1.130 Preparing and Reporting Information. 27

1.200 - Independence. 27

Chapter 1 - Section 2 Review Questions. 33

Chapter 1 - Kentucky Professional Ethics - Section 3. 34

Rule 1.300—General Standards Rule. 34

1.310 Compliance with Standards Rule. 35

1.320 Accounting Principles Rule. 35

1.400.001 Acts Discreditable Rule. 36

1.510.001 — Contingent Fees Rule. 37

1.520.001—Commissions and referral fees Rule. 38

1.600.001 —Advertising and other forms of solicitation. 39

1.700.001— Confidential client information rule. 40

1.800.001—Form of organization and name rule. 41

Chapter 1 - Section 3 Review Questions. 43

Chapter 1 - Kentucky Professional Ethics - Section 4. 44

Part 2 – Members in Business. 44

2.100.001 – Integrity and Objectivity Rule. 44

2.130.030 Obligation of a Member to His or Her Employer’s External Accountant 45

2.300.001 — General standards rule. 45

2.310.001—Compliance with standards rule. 46

2.320.001—Accounting principles rule. 46

2.400.001 Acts Discreditable Rule. 47

2.400.070 Confidential Information from employment or volunteer activities. 47

Part 3 – Other Members. 48

3.400.001 - Acts discreditable rule. 48

3.400.070 Confidential Information from employment or volunteer activities. 48

Answers to Review Questions. 50

Chapter 1 - Section 1 Review Questions Feedback. 50

Chapter 1 - Section 2 Review Questions Feedback. 51

Chapter 1 - Section 3 Review Questions Feedback. 52

Glossary. 54

Index. 55

Final Examination. 57

CPASelfstudy.com Course Evaluation. 59