Table of Contents

Chapter 1 - Ohio Professional Ethics - Section 1. 9

Ethics Background. 9

Morals. 9

What is Ethics?. 9

The Relationship of Morals and Ethics. 10

Professional Ethics. 11

Legal versus Ethical 12

Why Should We Study Professional Ethics?. 12

Accounting Ethics. 12

Ethical Core Foundations for CPAs. 13

Ethical Dilemmas. 14

Chapter 1 - Section 1 Review Questions. 15

Chapter 1 - Ohio Professional Ethics - Section 2. 16

Chapter 4701 – Ohio Revised Code - Accountancy Board Law.. 16

4701.12 Advertisements. 16

4701.13 Publication of annual register. 16

4701.14 Unauthorized practice. 16

4701.15 Employees. 20

4701.16 Disciplinary actions. 20

Chapter 4701-Ohio Administrative Code – Accountancy Board Rules. 22

4701-7-04 Practice of public accounting and regulated services. 22

4701-7-09 Internet practice. 22

Chapter 4701-9 Accounting Standards. 23

4701-9-01 Integrity and objectivity. 23

Case Study: Year End Adjustments and Loan Covenants – Integrity and Objectivity. 23

4701-9-02 General standards. 24

4701-9-03 Generally accepted auditing standards. 24

4701-9-04 Generally accepted accounting principles. 25

4701-9-05 Attestation standards. 26

4701-9-06 Accounting and review services standards. 26

4701-9-08 Consulting standards. 26

4701-9-09 Tax services standards. 27

4701-9-10 Quality control standards. 27

Chapter 4701-11 Ethics Standards. 27

4701-11-01 Independence. 27

4701-11-02 Confidential client information. 27

4701-11-03 Contingent fees. 28

Case Study: A Little Extra Income – Contingent Fees. 29

4701-11-04 Commissions and referral fees. 29

4701-11-05 Form of practice and name. 30

Case Study: Audit Experts Group - Name Requirements. 32

4701-11-06 Retention of client records. 32

Case Study: Client Switching CPA Firms – Record Retention. 34

4701-11-07 Board communications. 34

4701-11-09 Acts discreditable. 35

Case Study: Busy Season was too Busy – Failure to File Tax return. 36

4701-11-10 Application of ethics rules to non-CPA owners. 36

Chapter 1 - Section 2 Review Questions. 37

Chapter 1 - Ohio Professional Ethics - Section 3. 38

The AICPA Code of Professional Conduct 38

About the Code. 38

Preface. 38

Part 1 – Members in Public Practice. 39

Rule 1.100 Integrity and Objectivity. 40

Case Study – Married Tax Clients Divorcing. 41

1.130 Preparing and Reporting Information. 41

1.200 - Independence. 42

Chapter 1 - Section 3 Review Questions. 47

Chapter 1 - Ohio Professional Ethics - Section 4. 48

Rule 1.300—General Standards Rule. 48

1.310 Compliance with Standards Rule. 49

1.320 Accounting Principles Rule. 49

1.400.001 Acts Discreditable Rule. 50

1.510.001 — Contingent Fees Rule. 51

1.520.001—Commissions and referral fees Rule. 52

1.600.001 —Advertising and other forms of solicitation. 53

1.700.001— Confidential client information rule. 53

1.800.001—Form of organization and name rule. 55

Chapter 1 - Section 4 Review Questions. 56

Chapter 1 - Ohio Professional Ethics - Section 5. 57

Part 2 – Members in Business. 57

2.100.001 – Integrity and Objectivity Rule. 57

2.130.030 Obligation of a Member to His or Her Employer’s External Accountant 58

2.170.010 – Pressure to Breach the Rules. 58

2.300.001 — General standards rule. 59

2.310.001—Compliance with standards rule. 59

2.320.001—Accounting principles rule. 59

Case Study - The Company with Excess Reserves. 60

2.400.001 Acts Discreditable Rule. 61

2.400.070 Confidential Information from employment or volunteer activities. 61

Part 3 – Other Members. 62

3.400.001 - Acts discreditable rule. 62

3.400.070 Confidential Information from employment or volunteer activities. 62

Answers to Review Questions. 64

Chapter 1 - Section 1 Review Questions Feedback. 64

Chapter 1 - Section 2 Review Questions Feedback. 65

Chapter 1 - Section 3 Review Questions Feedback. 66

Chapter 1 - Section 4 Review Questions Feedback. 68

Glossary. 70

Index. 72

Final Examination. 74

CPASelfstudy.com Course Evaluation. 77