Learning Objectives

Know the definitions and general importance of ethics and professionalism.

Understand three basic theories of ethical behavior.

Begin to understand how to deal with ethical dilemmas through an example situation.

Understand the stages through which moral judgment develops in an individual.

Be familiar with how professional ethics standards for auditors have developed over time and the entities involved.

Understand the framework for the Code of Professional Conduct.

Know the principles of professional conduct.

Understand the framework for the Rules of Conduct.

Be familiar with the rules of conduct that apply to independence, integrity, and objectivity.

Know the basic differences between the SEC's independence rules for public company auditors and AICPA standards for audits of nonpublic entities.

Be familiar with the rules of conduct that apply to general standards and accounting principles.

Be familiar with the rules of conduct that apply to responsibilities to clients.

Be familiar with the rules of conduct that apply to other responsibilities and practices.

Understand the definition of a system of quality control and the AICPA's two-tiered quality peer review program.

Know the elements of quality control and how a firm monitors its quality control system.

Be familiar with the PCAOB inspection program for accounting firms that audit public companies