AICPA Ethics Exam
1. Ethical Decision Making Model: helps you actively work through gray area
and choose the best possible solution to an ethical dilema
Step 1: Recognize the ethical issue
Step 2: Gather the critical facts
Step 3: Identify the stakeholders
Step 4: Consider your alternatives
Step 5: Consider the effect on stakeholders
Step 6: Consider your comfort level
Step 7: Consider rules, regulations and laws
Step 8: Make a decision
Step 9: Document your efforts
Step 10: Evaluate the outcome
2. Step 1: Recognize the ethical issue
3. Step 2: Gather the critical facts
-you may not have all the facts, but you need the key ones (material)
4. Step 3: Identify the stakeholders
-who is affected by your decisions/actions
-consider as many as possible
5. Step 4: Consider your alternatives
-approaches you could take to address this matter and resolve the ethical conflict
6. Step 5: Consider the effect on stakeholders
-effect of each alternative
7. Step 6: Consider your comfort level
-how comfortable are you with each option
-how would you feel if you have to discuss your decision in public
8. Step 7: Consider rules, regulations, and laws
-rules set by AICPA, state accountancy board, state CPA society
, AICPA Ethics Exam
9. Step 8: Make a decision
-take the time you need
-discuss with colleague, gain perspectives, counsel, don't be hasty
10. Step 9: Document your efforts
-your understanding of the facts
-who you consulted with and their professional affiliations
-your decision
11. Step 10: Evaluate the outcome
-would you have done anything differently
12. Professional & Regulatory Bodies: set ethics standards and rules for
members of the accounting profession
State CPA licensing boards
AICPA
SEC
PCABO
IFAC
IRS
GAO
DOL
others
13. State CPA Licensing Boards: issues CPA licesnes and oversee ethical
conduct of jurisdiction
14. AICPA: American Institute of Certified Public Accountants national
professional organization for all CPAs; work with state CPA societies
-PEEC: Professional Ethics Executive Committee promulgates and enforces
ethics and independence rules that apply to all members 15. SEC: Securities and
Exchange Commission
1. Ethical Decision Making Model: helps you actively work through gray area
and choose the best possible solution to an ethical dilema
Step 1: Recognize the ethical issue
Step 2: Gather the critical facts
Step 3: Identify the stakeholders
Step 4: Consider your alternatives
Step 5: Consider the effect on stakeholders
Step 6: Consider your comfort level
Step 7: Consider rules, regulations and laws
Step 8: Make a decision
Step 9: Document your efforts
Step 10: Evaluate the outcome
2. Step 1: Recognize the ethical issue
3. Step 2: Gather the critical facts
-you may not have all the facts, but you need the key ones (material)
4. Step 3: Identify the stakeholders
-who is affected by your decisions/actions
-consider as many as possible
5. Step 4: Consider your alternatives
-approaches you could take to address this matter and resolve the ethical conflict
6. Step 5: Consider the effect on stakeholders
-effect of each alternative
7. Step 6: Consider your comfort level
-how comfortable are you with each option
-how would you feel if you have to discuss your decision in public
8. Step 7: Consider rules, regulations, and laws
-rules set by AICPA, state accountancy board, state CPA society
, AICPA Ethics Exam
9. Step 8: Make a decision
-take the time you need
-discuss with colleague, gain perspectives, counsel, don't be hasty
10. Step 9: Document your efforts
-your understanding of the facts
-who you consulted with and their professional affiliations
-your decision
11. Step 10: Evaluate the outcome
-would you have done anything differently
12. Professional & Regulatory Bodies: set ethics standards and rules for
members of the accounting profession
State CPA licensing boards
AICPA
SEC
PCABO
IFAC
IRS
GAO
DOL
others
13. State CPA Licensing Boards: issues CPA licesnes and oversee ethical
conduct of jurisdiction
14. AICPA: American Institute of Certified Public Accountants national
professional organization for all CPAs; work with state CPA societies
-PEEC: Professional Ethics Executive Committee promulgates and enforces
ethics and independence rules that apply to all members 15. SEC: Securities and
Exchange Commission
