Table of Contents

 

Chapter 1 - Wisconsin 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 - Wisconsin Professional Ethics - Section 2. 16

Wisconsin Administrative Code, Chapter Accy 1 – Rules of Conduct 16

Subchapter I — Applicability and Definitions. 16

Accy 1.001 Applicability of rules of conduct to certified public accountants. 16

Accy 1.002 Applicability of rules of conduct to certified public accountants who have a significant influence over a CPA−related business or who advertise as a CPA. 16

Accy 1.003 Definitions. 16

Subchapter II — Professional Conduct, Integrity, and Objectivity. 18

Accy 1.101 Professional conduct. 18

Accy 1.102 Integrity and objectivity. 18

Subchapter III — Competence and Technical Standards. 19

Accy 1.201 General standards. 19

Accy 1.202 Auditing standards. 20

Accy 1.203 Accounting principles. 20

Accy 1.204 Other technical standards. 20

Accy 1.205 Standards for auditing, accounting and review services, and attestation engagements. 20

Subchapter IV — Responsibilities to Clients. 21

Accy 1.301 Confidential client information. 21

Accy 1.302 Contingent fees, commissions and referral fees. 21

Subchapter V — Other Responsibilities and Practices. 22

Accy 1.401 Acts discreditable. 22

Case Study: Return of client provided records. 24

Accy 1.402 Advertising or other forms of solicitation. 25

Accy 1.404 Incompatible occupations. 25

Accy 1.405 Firm Names. 26

Case Study: Audit Experts Group. 27

Accy 1.406 Practice while suspended. 28

Accy 1.407 Communications. 28

Case Study: Board Complaint 28

Accy 1.408 Ownership requirements. 28

Chapter 1 - Section 2 Review Questions. 30

Chapter 1 - Wisconsin Professional Ethics - Section 3. 31

The AICPA Code of Professional Conduct 31

About the Code. 31

Preface. 31

Part 1 – Members in Public Practice. 32

Rule 1.100 Integrity and Objectivity. 33

Case Study – Married Tax Clients Divorcing. 34

1.130 Preparing and Reporting Information. 34

Case Study – Year End Adjustments and Loan Covenants. 35

1.200 - Independence. 36

Chapter 1 - Section 3 Review Questions. 41

Chapter 1 - Wisconsin Professional Ethics - Section 4. 42

Rule 1.300—General Standards Rule. 42

Case Study – Audit Engagement with No Prior Experience. 43

1.310 Compliance with Standards Rule. 43

Case Study – Peer Review Discoveries. 43

1.320 Accounting Principles Rule. 44

1.400.001 Acts Discreditable Rule. 44

1.510.001 — Contingent Fees Rule. 45

1.520.001—Commissions and referral fees Rule. 46

1.600.001 —Advertising and other forms of solicitation. 47

1.700.001— Confidential client information rule. 48

1.800.001—Form of organization and name rule. 49

Chapter 1 - Section 4 Review Questions. 51

Chapter 1 - Wisconsin Professional Ethics - Section 5. 52

Part 2 – Members in Business. 52

2.100.001 – Integrity and Objectivity Rule. 52

2.130.030 Obligation of a Member to His or Her Employer’s External Accountant 53

2.300.001 — General standards rule. 53

2.310.001—Compliance with standards rule. 54

2.320.001—Accounting principles rule. 54

Case Study - The Company with Excess Reserves. 55

2.400.001 Acts Discreditable Rule. 56

2.400.070 Confidential Information from employment or volunteer activities. 56

Part 3 – Other Members. 57

3.400.001 - Acts discreditable rule. 57

3.400.070 Confidential Information from employment or volunteer activities. 57

Answers to Review Questions. 59

Chapter 1 - Section 1 Review Questions Feedback. 59

Chapter 1 - Section 2 Review Questions Feedback. 60

Chapter 1 - Section 3 Review Questions Feedback. 61

Chapter 1 - Section 4 Review Questions Feedback. 63

Glossary. 65

Index. 67

Final Examination. 69

CPASelfstudy.com Course Evaluation. 72