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
4 1 2 Code of Conduct and Ethics Explained

1 2 Code of Conduct and Ethics Explained

Key Concepts

Code of Conduct

The Code of Conduct is a set of guidelines that outline the professional standards and ethical responsibilities expected of Certified Public Accountants (CPAs). It serves as a framework to ensure that CPAs maintain high ethical standards in their professional practice.

Ethical Principles

Ethical principles are foundational values that guide the behavior and decision-making of CPAs. These principles include integrity, objectivity, confidentiality, and due care. Adhering to these principles ensures that CPAs act in the best interest of their clients and the public.

Professional Responsibilities

Professional responsibilities encompass the duties and obligations that CPAs have towards their clients, employers, and the public. These responsibilities include maintaining competence, complying with relevant laws and regulations, and avoiding conflicts of interest.

Independence

Independence refers to the ability of a CPA to act without bias or influence from external factors. Maintaining independence is crucial for CPAs, especially when performing audits or attestation engagements, as it ensures the credibility and reliability of their work.

Confidentiality

Confidentiality involves safeguarding the information entrusted to a CPA by their clients or employers. CPAs must ensure that sensitive information is not disclosed to unauthorized parties, except when required by law or professional standards.

Integrity

Integrity means acting with honesty and adhering to moral and ethical principles. CPAs are expected to be truthful and transparent in their professional dealings, avoiding any actions that could compromise their integrity.

Objectivity

Objectivity requires CPAs to maintain an impartial and unbiased approach in their professional activities. This principle ensures that CPAs provide fair and accurate assessments and recommendations, free from personal biases or external influences.

Examples and Analogies

Consider the Code of Conduct as a "moral compass" for CPAs, guiding them in making ethical decisions. Ethical principles are like "guardrails" that keep CPAs on the right path, preventing them from straying into unethical behavior.

Professional responsibilities are akin to "contractual obligations" that CPAs must fulfill to maintain trust and credibility. Independence is like "wearing blinders" to avoid distractions and ensure a clear, unbiased view.

Confidentiality is similar to "locking a treasure chest" to protect valuable information. Integrity is like "wearing a badge of honor" that signifies trustworthiness and honesty.

Objectivity is akin to "wearing a referee's uniform" in a sports match, ensuring fair play and unbiased decisions.

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