About Me
CPA
1 Regulation (REG)
1.1 Ethics, Professional Responsibilities, and Federal Tax Procedures
1.1 1 Professional ethics and responsibilities
1.1 2 Federal tax procedures and practices
1.1 3 Circular 230
1.2 Business Law
1.2 1 Legal rights, duties, and liabilities of entities
1.2 2 Contracts and sales
1.2 3 Property and bailments
1.2 4 Agency and employment
1.2 5 Business organizations
1.2 6 Bankruptcy
1.2 7 Secured transactions
1.3 Federal Taxation of Property Transactions
1.3 1 Basis determination and adjustments
1.3 2 Gains and losses from property transactions
1.3 3 Like-kind exchanges
1.3 4 Depreciation, amortization, and depletion
1.3 5 Installment sales
1.3 6 Capital gains and losses
1.3 7 Nontaxable exchanges
1.4 Federal Taxation of Individuals
1.4 1 Gross income inclusions and exclusions
1.4 2 Adjustments to income
1.4 3 Itemized deductions and standard deduction
1.4 4 Personal and dependency exemptions
1.4 5 Tax credits
1.4 6 Taxation of individuals with multiple jobs
1.4 7 Taxation of nonresident aliens
1.4 8 Alternative minimum tax
1.5 Federal Taxation of Entities
1.5 1 Taxation of C corporations
1.5 2 Taxation of S corporations
1.5 3 Taxation of partnerships
1.5 4 Taxation of trusts and estates
1.5 5 Taxation of international transactions
2 Financial Accounting and Reporting (FAR)
2.1 Conceptual Framework, Standard-Setting, and Financial Reporting
2.1 1 Financial reporting framework
2.1 2 Financial statement elements
2.1 3 Financial statement presentation
2.1 4 Accounting standards and standard-setting
2.2 Select Financial Statement Accounts
2.2 1 Revenue recognition
2.2 2 Inventory
2.2 3 Property, plant, and equipment
2.2 4 Intangible assets
2.2 5 Liabilities
2.2 6 Equity
2.2 7 Compensation and benefits
2.3 Specific Transactions, Events, and Disclosures
2.3 1 Leases
2.3 2 Income taxes
2.3 3 Pensions and other post-retirement benefits
2.3 4 Derivatives and hedging
2.3 5 Business combinations and consolidations
2.3 6 Foreign currency transactions and translations
2.3 7 Interim financial reporting
2.4 Governmental Accounting and Not-for-Profit Accounting
2.4 1 Governmental accounting principles
2.4 2 Governmental financial statements
2.4 3 Not-for-profit accounting principles
2.4 4 Not-for-profit financial statements
3 Auditing and Attestation (AUD)
3.1 Engagement Planning and Risk Assessment
3.1 1 Engagement acceptance and continuance
3.1 2 Understanding the entity and its environment
3.1 3 Risk assessment procedures
3.1 4 Internal control
3.2 Performing Audit Procedures and Evaluating Evidence
3.2 1 Audit evidence
3.2 2 Audit procedures
3.2 3 Analytical procedures
3.2 4 Substantive tests of transactions
3.2 5 Tests of details of balances
3.3 Reporting on Financial Statements
3.3 1 Audit report content
3.3 2 Types of audit reports
3.3 3 Other information in documents containing audited financial statements
3.4 Other Attestation and Assurance Engagements
3.4 1 Types of attestation engagements
3.4 2 Standards for attestation engagements
3.4 3 Reporting on attestation engagements
4 Business Environment and Concepts (BEC)
4.1 Corporate Governance
4.1 1 Internal controls and risk assessment
4.1 2 Code of conduct and ethics
4.1 3 Corporate governance frameworks
4.2 Economic Concepts
4.2 1 Microeconomics
4.2 2 Macroeconomics
4.2 3 Financial risk management
4.3 Financial Management
4.3 1 Capital budgeting
4.3 2 Cost measurement and allocation
4.3 3 Working capital management
4.3 4 Financial statement analysis
4.4 Information Technology
4.4 1 IT controls and security
4.4 2 Data analytics
4.4 3 Enterprise resource planning (ERP) systems
4.5 Operations Management
4.5 1 Strategic planning
4.5 2 Project management
4.5 3 Quality management
4.5 4 Supply chain management
Professional Ethics and Responsibilities

Professional Ethics and Responsibilities

Key Concepts

Integrity

Integrity is the cornerstone of professional ethics. It involves being honest and having strong moral principles. A CPA with integrity will always act in a manner that is truthful and fair, even when no one is watching. For example, a CPA must disclose all relevant information in financial statements, even if it might reflect negatively on the client.

Objectivity

Objectivity means maintaining impartiality and avoiding bias in judgment. A CPA must ensure that their decisions and recommendations are based solely on the facts and professional standards, without any personal or external influences. For instance, when auditing a company, a CPA should not allow personal relationships with the management to affect the audit findings.

Confidentiality

Confidentiality requires that sensitive information entrusted to a CPA remains protected and is not disclosed to unauthorized parties. This is crucial in maintaining trust between the CPA and their clients. For example, a CPA should never discuss a client's financial details with colleagues or friends, even if the client is not present.

Professional Competence

Professional competence involves maintaining and enhancing the skills and knowledge necessary to perform professional duties. A CPA must stay updated with the latest accounting standards and practices. For example, a CPA should regularly attend training sessions and professional development courses to ensure they are using the most current methods in their work.

Due Care

Due care refers to the level of prudence and diligence expected from a professional. A CPA must exercise a reasonable level of care and skill in all professional activities. For instance, when preparing tax returns, a CPA should double-check all calculations and ensure that all deductions are valid and properly documented.

Examples and Analogies

Consider integrity as the "backbone" of a CPA's professional life, providing strength and support. Objectivity can be likened to a "balance scale," ensuring that decisions are evenly weighted. Confidentiality is akin to a "vault," keeping sensitive information secure. Professional competence is the "toolbox" that a CPA uses to perform their duties effectively. Due care is the "safety net," ensuring that no mistakes fall through the cracks.

Conclusion

Understanding and adhering to professional ethics and responsibilities is essential for any CPA. These principles not only guide professional behavior but also build trust and credibility with clients and the public. By maintaining integrity, objectivity, confidentiality, professional competence, and due care, a CPA can ensure they are acting in the best interest of their clients and the profession as a whole.

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