The New Ethics Code: What Tax People Need to Know

Transcription

1 SESSION E5 60TH ANNUAL MNCPA TAX CONFERENCE November 17-18, 2014 Minneapolis Convention Center ONLINE RESOURCES Session Handouts Most session handouts are available on the MNCPA website. To access: Go to Log in with your MNCPA username and password Note: Your conference registration fee must be paid in full to access session handouts online. CPE Transcript (Certificate of Attendance) Your official transcript will be available on the MNCPA website. To access: Go to Log in with your MNCPA username and password Note: Tax Conference transcripts will be available Friday, Nov. 21. MATERIALS DISCLAIMER The New Ethics Code: What Tax People Need to Know Charles Selcer, CPA, CGMA, MBA Schechter Dokken Kanter, CPAs Minneapolis, MN Charles Selcer, CPA, CGMA, MBA, founding shareholder of Schechter Dokken Kanter, CPAs, has over 30 years of audit and business consulting experience. He specializes in audits of distribution companies, SEC registrants and not-for-profit organizations, including those subject to Circular A-133. Selcer also has an extensive background in statistical sampling in audit applications, organizational planning and facilitating strategic planning meetings. He currently serves on the MNCPA Professional Ethics Committee and is the author of the monthly "Ethics Q&A" column for the MNCPA's Footnote magazine. These materials are provided for the exclusive, personal use of the customer. Any other reproduction, retransmission, republication or other use is expressly prohibited without prior written consent from the Minnesota Society of Certified Public Accountants (MNCPA) and/or the content author. The MNCPA makes no warranty, guarantee or representation as to the accuracy or completeness of these materials. The contents of these materials are subject to change without notice. The content authors and/or instructors are not engaged in rendering legal, accounting or professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

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3 60th Annual MNCPA Tax Conference SESSION E5 The New Ethics Code What Tax People Need to Know MNCPA Tax Conference November 17, 2014 Effective December 15, 2014 Early application is permitted Page 1

4 60th Annual MNCPA Tax Conference SESSION E5 Numbering System All new 0 Preface 1 Members in Public Practice 2 Members in Business 3 Other members Preface 0 Section 24 pages long Overview Structure/Application Principles Definitions Non authoritative guidance New, revised, pending Deleted interpretations Page 2

5 60th Annual MNCPA Tax Conference SESSION E Drafting Conventions Consider member is required to think about Evaluate member has to weigh and assess the significance of a matter Determine (new) member has to come to a conclusion and make a decision on a matter Definition Acceptance Level ( ) In connection with independence, an acceptable level is a level at which a reasonable and informed third party who is aware of the relevant information would be expected to conclude that a member s independence is not impaired. When used in connection with any rule but the Independence Rule [ ] an acceptable level is a level at which a reasonable and informed third party who is aware of the relevant information would be expected to conclude that a member s compliance with the rules is not compromised. Page 3

6 60th Annual MNCPA Tax Conference SESSION E5 Members in Public Practice 1 Section 102 pages long Introduction Integrity & Objectivity Independence (60 pages) General Standards Compliance with Standards Members in Public Practice 1 Section 102 pages long Accounting Principles Acts Discreditable Fees & Other Remuneration Advertising/Solicitation Confidential Information Form or Organization/Name Page 4

7 60th Annual MNCPA Tax Conference SESSION E5 Technical Standards Old Code 201, 202, 203 New Code 1,300, 1,310, 1,320 Confidential Information Client competitors To reduce the threat of disclosing client information to a competitor, the member should emphasize to all relevant parties When a member withdraws from an engagement due to, for example, discovery of irregularities in a client s tax return, if contacted by the successor, the member should suggest that the successor ask the client to permit the member to discuss all matters freely with the successor Page 5

8 60th Annual MNCPA Tax Conference SESSION E5 Confidential Information Tax Services Defines tax services Defines tax return Defines preparation & transmittal Independence not impaired when a member signs and files a return if Taxing authority has procedures in place An individual in management who is authorized to sign and file providing a signed statement Signed Statement to File: Signer is authorized to sign & file Signer has reviewed the return Authorizes the member to sign Page 6

9 60th Annual MNCPA Tax Conference SESSION E Power of Attorney (New Section) POA s yield possible self review, management participation and advocacy threats to Independence Member can not bind the client attest to an agreement and stay independent Failure to File a Tax Return or Pay a Tax Liability Applies to member and his/her firm Applies to payroll and other taxes collected Page 7

10 60th Annual MNCPA Tax Conference SESSION E Contingent Fees in Tax Matters.02 Preparation of an original or amended tax return or claim for tax refund includes giving advice on events that have occurred at the time that the advice is given if such advice is directly relevant to determining the existence, character, or amount of a schedule, an entry, or another portion of a return or claim for refund.03 A fee is considered determined based on the findings of governmental agencies and, therefore, is not a contingent fee is the member can demonstrate a reasonable expectation, at the time of a fee arrangement, that a government agency will provide substantive consideration of the subject matter with respect to the member s client. Such an expectation is not reasonable if the member prepares a client s original tax returns as outlined in paragraph.02 above Tax Contingent Fees Ok: Amended return filing claiming a refund on a tax issue that is the subject of a test case Representing client in a PLR Filing Protest of a tax authority assessment CRE tax Refund filing for an amount > Joint Committee on Taxation review (1M) Page 8

11 60th Annual MNCPA Tax Conference SESSION E Contingent Fee Not Ok Filing an amended return to claim a valid deduction previously omitted Filing an amended return to correct reporting of income previously over reported Ethical Conflicts (New Section) Obstacles to doing the right thing Conflicts in applying legal and professional standards Page 9

12 60th Annual MNCPA Tax Conference SESSION E Application of Conceptual Framework for Members in Business and Ethical Conflicts Conceptual Framework is at Threats/Safeguards approach Part 3. Other Members Members who are neither in public practice or members in business Retired Currently not employed Acts Discreditable is what Part 3 discusses at Confidential information obtained from previous employment or volunteering. Page 10

13 Appendix D Mapping Document [As of December 31, 2013] On June 1, 2014, the AICPA issued a codification of the code s principles, rules, interpretations and rulings (revised code). To assist users in understanding where the content from the prior code appears in the revised code, this mapping document was created. The first two columns identify the citation and title where the content resided in the prior code and the second two columns identify the citation and title where the content now resides in the revised code. The "Prior Code Citations" box has been left blank where the content did not exist in the prior code and is new to the revised code. "New Titles" that appear in regular roman text are effective December 15, 2014, in bold italic December 15, 2015, and in italic have components that are effective both December 15, 2014, and December 15, Prior Code Citations Title in Prior Code New Citation New Title Introduction Composition, Applicability, and Compliance Overview of the Code of Professional Conduct Principles and Rules of Conduct Introduction Other Guidance Interpretations and Other Guidance Structure of the AICPA Code Application of the AICPA Code 91 Applicability Application of the AICPA Code Citations Transition Provisions Drafting Conventions 51 Preamble Preamble 52 Article I Responsibilities Responsibilities 53 Article II The Public Interest The Public Interest 54 Article III Integrity Integrity 55 Article IV Objectivity and Independence Objectivity and Independence 56 Article V Due Care Due Care 57 Article VI Scope and Nature of Services Scope and Nature of Services 156

14 92 Definitions Definitions Various locations Conceptual Framework for AICPA Independence Standards Introduction Application of the Independence Rules to Affiliates Definitions Acceptable level Acceptable level Affiliate Attest Client Attest engagement Attest Engagement Attest engagement team Attest Engagement Team Financial Relationships Definitions Beneficially Owned Client Client Close relative Close Relative Confidential Client Information Confidential Client Information Control (s) (led) Council Council Covered Member Covered Member Financial Relationships Definitions Financial Relationships Definitions Direct financial interest Employing organization Financial interest 157

15 paragraph.09 Application of the Independence Rules to Affiliates Definitions Financial statement attest client Financial statements Financial statements Firm Firm Immediate family Immediate family Conceptual Framework for AICPA Independence Standards Definitions Conceptual Framework for AICPA Independence paragraphs.06.08standards Definitions Financial Relationships Definitions Individual in a position to influence the attest engagement Impair(ed)(ing) Independence Indirect financial interest Individual in a position to influence the attest engagement Institute Institute Interpretation of a rules of conduct Interpretation Joint closely held investment Joint Closely-Held Investments Key position Key position Financial institution Lending institution Loan Loan Manager Manager Member Member Member in business Member in business 158

16 paragraph paragraph Network Network Network Firm Network Firm Normal Lending Procedures, Terms, and Requirements Normal lending procedures, terms, and requirements Office Office Partner Partner Partner Equivalents Partner Equivalents Period of the professional engagement Period of the professional engagement Professional services Professional Services Conceptual Framework for AICPA Independence Standards Definitions Public interest entities Practice of public accounting Public Practice (also referred to as the practice of public accounting) Conceptual Framework for AICPA Independence Standards Definitions Interpretation of Rule 101 Application of the Independence Rules to Covered Members Formerly Employed by a Client or Otherwise Associated with a Client Safeguards Share-based compensation arrangements Significant influence Significant influence Performance of nonattest services Management Responsibilities Use of a Third-Party Service Provider to Assist a Member in Providing Professional Services Applicability of General and Technical Standards When Using a Third-Party Service Provider Source Documents Third-party service provider Third-party service provider 159

17 Use of a Third-Party Service Provider to Provide Professional Services to Clients or Administrative Support Services to the Member Those Charged with Governance Third-party service provider Those Charged With Governance Threats Nonauthoritative Guidance New and Revised Interpretations and Other Guidance Pending Interpretations and Other Guidance Deleted Interpretations and Other Guidance Members in Public Practice Introduction Conceptual Framework for Members in Public Practice Members in Public Practice Ethical Conflicts Integrity and Objectivity Integrity and Objectivity Rule Integrity and Objectivity Rule Application of the Conceptual Framework for Members in Public Practice and the Ethical Conflicts Conflicts of Interest Conflicts of Interest Service on Board of Directors of Federated Fund-Raising Organization Member Providing Services for Company Executives Member is Connected With an Entity That has a Loan to or From a Client j k l Conflicts of Interest Conflicts of Interest Conflicts of Interest Bank Director Director Positions 160

18 Acceptance or Offering of Gifts or Entertainment Knowing misrepresentations in the preparation of financial statements or records Subordination of judgment by a member Professional Services involving client advocacy Use of a Third-Party Service Provider to Assist a Member in Providing Professional Services Offering or Accepting Gifts or Entertainment Knowing Misrepresentations in the Preparation of Financial Statements or Records Subordination of Judgment Client Advocacy Use of a Third-Party Service Provider Rule 101 Independence Independence Rule Interpretation of Rule 101 Other Considerations Interpretation of Rule 101 Other Considerations Conceptual Framework for AICPA Independence Standards Introduction Interpretation of Rule 101 Other Considerations Conceptual Framework for AICPA Independence Standards Introduction Network and network firms Application of the Conceptual Framework for Independence and Ethical Conflicts Interpretation Application of the Conceptual Framework for Independence and Ethical Conflicts Interpretation Conceptual Framework for Independence Conceptual Framework for Independence Conceptual Framework for Independence Conceptual Framework for Independence Network and Network Firms 161

19 Network and network firms Characteristics of a Network The effect of alternative practice structures on the applicability of independence rules Use of Nonindependent CPA Firm on an Engagement Application of the Independence Rules to Affiliates The effect of independence of relationships with entities included in the governmental financial statements Actions Permitted When Independence is Impaired Indemnification Clause in Engagement Letters Characteristics of a Network Alternative Practice Structures Use of a Nonindependent CPA Firm on an Engagement Client Affiliates Entities Included in State and Local Government Financial Statements Consenting to the Use of a Previously Issued Report Indemnification of a Covered Member Indemnification of a Client Indemnification of an Attest Client Agreement with Attest Client to Use ADR Techniques Commencement of ADR Proceeding Alternative Dispute Resolution Alternative Dispute Resolution New Unpaid Fees Unpaid Fees Unpaid Fees New Fees and Other Types of Remuneration (A)(1) Interpretation of Rule 101-A Overview of Financial Interests Financial Relationships Financial Interests Overview of Financial Interests 162

20 101.02(B) (A)(2) Interpretation of Rule 101-B Overview of Financial Interests Financial Relationships Unsolicited Financial Interest Financial Relationships Mutual Funds Financial Relationships Retirement, Savings, Compensation, or Similar Plans Financial Relationships Partnerships Financial Relationships Limited Liability Companies Financial Relationships Section 529 Plans Member Designated to Serve as Executor or Trustee Interpretation of Rule 101-A Financial Relationships Trust Investments Participation in Employee Benefit Plan Sponsored by Client Financial Relationships Retirement, Savings, Compensation, or Similar Plans Employment or Association with Attest Clients Member's Depository Relationship With Client Financial Institution Unsolicited Financial Interests Mutual Funds Retirement, Savings, Compensation, or Similar Plans Partnerships Limited Liability Companies Section 529 Plans Trustee or Executor Trustee or Executor Trust Investments Plan is an Attest Client or is Sponsored by an Attest Client Plan is an Attest Client or is Sponsored by an Attest Client Former Partners and Professional Employees Participation in a Firm- Sponsored Plan Depository Accounts 163

21 (A)(4) (A)(3) Financial Services Company Client Has Custody of a Member's Assets Financial Relationships Insurance Products Financial Relationships Insurance Products Financial Relationships Insurance Products Interpretation of Rule 101-A Loans from financial institution clients and related terminology Membership in Client Credit Union Brokerage and Other Accounts Insurance Policies with No Investment Option Insurance Policies with Investment Options Insurer Undergoes Demutualization Loans Loans and Leases with Lending Institutions Loans and Leases with Lending Institutions Servicing of Loan Servicing of a Loan Member Leasing Property to or From Client Member is Connected With an Entity That has a Loan to or From a Client Independence and cooperative arrangements with clients Leases Interpretation of Rule 101-A Joint Interest in Vacation Home Interpretation of Rule 101 Application of the Independence Rules to a Covered Member's Immediate Family Association with an Entity that has a Loan To or From an Attest Client Cooperative Arrangements with Attest Clients Joint Closely-Held Investments Joint Closely-Held Investments Immediate Family Members 164

22 Interpretation of Rule 101 Application of the Independence Rules to a Covered Member's Immediate Family Permitted Employment Interpretation of Rule 101 Grandfathered Employment Relationships Interpretation of Rule 101 Application of the Independence Rules to a Covered Member's Immediate Family Employee Benefits Plans Other Than Certain Share- Based Arrangements or Nonqualified Deferred Compensation Plans Interpretation of Rule 101 Application of the Independence Rules to a Covered Member's Immediate Family Employee Benefits Plans Other Than Certain Share- Based Arrangements or Nonqualified Deferred Compensation Plans Interpretation of Rule 101 Application of the Independence Rules to a Covered Member's Immediate Family Share-Based Compensation Arrangements Resulting in Beneficial Financial Interests in Attest Clients Immediate Family Member is Employed by the Attest Client Immediate Family Member is Employed by the Attest Client Immediate Family Member Participation in an Employee Benefit Plan That Is an Attest Client or Is Sponsored by an Attest Client (Other than Certain Share-Based Arrangements or Nonqualified Deferred Compensation Plans) Immediate Family Member Participation in an Employee Benefit Plan With Financial Interests in an Attest Client Immediate Family Member Participation in Share-Based Compensation Arrangements Resulting in Beneficially Owned Financial Interests in Attest Clients 165

23 (C) Interpretation of Rule 101 Application of the Independence Rules to a Covered Member's Immediate Family Share-Based Compensation Arrangements Resulting in Rights to Acquire Shares in an Attest Client Interpretation of Rule 101 Application of the Independence Rules to a Covered Member's Immediate Family Share-Based Compensation Arrangements Based Upon Stock Appreciation Interpretation of Rule 101 Application of the Independence Rules to a Covered Member's Immediate Family Nonqualified Deferred Compensation Plans Interpretation of Rule 101 Application of the Independence Rules to a Close Relatives Interpretation of Rule 101 Grandfathered Employment Relationships Interpretation of Rule 101-C Permitted Employment With Client Educational Institution Honorary directorships and trusteeships of not-for-profit organization Member on Advisory Board of Client Immediate Family Member Participation in Share-Based Compensation Arrangements Resulting in Rights to Acquire Shares in an Attest Client Immediate Family Member Participation in Share- Based Compensation Arrangements Based Upon Stock Appreciation Immediate Family Member Participation in a Nonqualified Deferred Compensation Plan Close Relatives Close Relatives Simultaneous Employment or Association with an Attest Client Simultaneous Employment or Association with an Attest Client Honorary Director or Trustee of a Not-for-Profit Organization Member of Advisory Board 166

24 Member Serving on Governmental Advisory Unit Member of Governmental Advisory Committee Campaign Treasurer Campaign Treasurer Member on Board of Federated Fund-Raising Organization Member Serves on Board of Organization for Which Client Raises Funds Interpretation of Rule 101 Application of the Independence Rules to Covered Members Formerly Employed by a Client or Otherwise Associated with a Client Employment or Association with Attest Clients Considering Employment or Association with the Client Employment or Association with Attest Clients Member of Federated Fund- Raising Organization Member of Organization that Receives Funds From Fund- Raising Organization Former Employment or Association with an Attest Client Considering Employment or Association with an Attest Client Subsequent Employment or Association with an Attest Client Member of Social Club Member of a Social Club Association Membership Member of a Trade Association Performance of Services for CIRAs, Including Cooperatives, Condominium Associations, Planned Unit Developments, Homeowners Associations, and Timeshare Developments Membership in Client Credit Union Acceptance or Offering of Gifts and Entertainment to or From an Attest Client Member of a Common Interest Realty Association Member of a Credit Union Offering or Accepting Gifts or Entertainment 167

25 The effect of actual or threatened litigation on independence Performance of nonattest services Introduction and Engagements Subject to Independence Rules of Certain Regulatory Bodies Cumulative Effect Providing Multiple Nonattest Services Performance of nonattest services Management Responsibilities Performance of nonattest services General Requirements Performance of nonattest services General Requirements Performance of nonattest services Management Responsibilities Member Providing Advisory Services Performance of nonattest services Appraisal, Valuation and Actuarial Services Performance of nonattest services Benefit Plan Administration Performance of nonattest services Bookkeeping Performance of nonattest services Nontax Disbursements Performance of nonattest services Business Risk Consulting Actual or Threatened Litigation Scope and Applicability of Nonattest Services Cumulative Effect on Independence When Providing Multiple Nonattest Services Management Responsibilities General Requirements for Performing Nonattest Services Documentation Requirements When Providing Nonattest Services Advisory Services Advisory Services Appraisal, Valuation, and Actuarial Services Benefit Plan Administration Bookkeeping, Payroll, and Other Disbursements Bookkeeping, Payroll, and Other Disbursements Business Risk Consulting 168

26 Performance of nonattest services Corporate Finance Consulting or Advisory Performance of nonattest services Executive or employee search Performance of nonattest services Forensic Accounting Services Performance of nonattest services Information Systems Design, Installation or integration Performance of nonattest services Internal Audit Assistance Services Performance of nonattest services Investment Advisory or Management Performance of nonattest services Tax Compliance Services Modified Application of Rule 101 for Engagements Performed in Accordance with Statements on Standards for Attestations Engagements Modified Application of Rule 101 for Engagements Performed in Accordance with Statements on Standards for Attestations Engagements AUP Engagements Modified Application of Rule 101 for Engagements Performed in Accordance with Statements on Standards for Attestations Engagements Corporate Finance Consulting Executive or Employee Recruiting Forensic Accounting Information Systems Design, Implementation, or Integration Internal Audit Investment Advisory or Management , Tax Services Tax Services Power of Attorney Application of the Independence Rule to Engagements Performed in Accordance with Statements on Standards for Attestation Engagements Agreed-Upon Procedure Engagements Performed in Accordance with SSAEs Engagements, Other Than AUPs, Performed in Accordance with SSAEs 169

27 General Standards General Standards Rule New General Standards Rule Application of the Conceptual Framework for Members in Public Practice and Ethical Conflicts Competence Competence Supervision of Technical Specialist on Management Consulting Services Engagements Submission of Financial Statements by a Member in Public Practice Subcontractor Selection for Management Consulting Service Engagements Applicability of General and Technical Standards When Using a Third-Party Service Provider Supervision of a Specialist on Consulting Engagements Submission of Financial Statements Use of a Third-Party Service Provider Use of a Third-Party Service Provider Compliance with Standards Compliance with Standards Rule Compliance with Standards Rule Application of the Conceptual Framework for Members in Public Practice and Ethical Conflicts Accounting Principles Accounting Principles Rule Responsibility of employees for the preparation of financial statements in conformity with GAAP Accounting Principles Rule Application of the Conceptual Framework for Members in Public Practice and Ethical Conflicts Responsibility for Affirming that Financial Statements Are in Conformity With the Applicable Financial Reporting Framework 170

28 Status of FASB, GASB and FASAB interpretations Departures from Generally Accepted Accounting Principles Financial Statements Prepared Pursuant to Financial Reporting Frameworks Other than GAAP Status of Financial Accounting Standards Board, Governmental Accounting Standards Board, Federal Accounting Standards Advisory Board, and International Accounting Standards Board Interpretations Departures From Generally Accepted Accounting Principles Financial Statements Prepared Pursuant to Financial Reporting Frameworks Other than GAAP Acts Discreditable Acts Discreditable Rule Discrimination and Harassment in Employment Practices Solicitation or disclosure of CPA examination questions and answers Failure to file tax returns or pay tax liability Negligence in the preparation of financial statements or records Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies Failure to follow standards and/or procedures or other requirements in governmental audits Acts Discreditable Rule Application of the Conceptual Framework for Members in Public Practice and Ethical Conflicts Discrimination and Harassment in Employment Practices Solicitation or Disclosure of CPA Examination Questions and Answers Failure to File a Tax Return or Pay a Tax Liability Negligence in the Preparation of Financial Statements or Records Governmental Bodies, Commissions, or Other Regulatory Agencies Governmental Audits 171

29 Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies on indemnification and limitation of liability provisions in connection with audit and other attest services Confidential Information Obtained From Employment or Volunteer Activities Indemnification and Limitation of Liability Provisions Confidential Information Obtained from Employment or Volunteer Activities False, Misleading, or Deceptive Acts in Promoting or Marketing Professional Services Use of CPA Credential Use of the CPA Credential Response to Requests by Clients and Former Clients for Records Terminology Requests for Records Pursuant to Interpretation Member Removing Client Files From an Accounting Firm Use of Confidential Information on Management Consulting Service Engagements , Records Request Records Request Records Request Removing Client Files or Proprietary Information From a Firm Removing Client Files or Proprietary Information From a Firm Use of Confidential Information From Nonclient Sources Use of Confidential Information From Nonclient Sources Unpaid Fees Contingent Fees Contingent Fee Rule Contingent Fees in tax matters Contingent Fee Rule Application of the Conceptual Framework for Members in Public Practice and Ethical Conflicts Tax Matters 172

30 Definition of the Receipt of a Contingent Fee or a Commission Receipt of Contingent Fees or Commissions by Member's Spouse Commission and Contingent Fee Arrangements with Nonattest Client Investment Advisory Services Commissions and Referral Fees Definition of the Receipt of a Contingent Fee or a Commission Receipt of Contingent Fees or Commissions by Member's Spouse Referral of Products of Others Commission and Contingent Fee Arrangements with Nonattest Client Receipt of Contingent Fee Services Performed by a Member's Spouse for a Contingent Fee Contingent Fee Arrangements with an Investment Advisory Services Nonattest Client that is Related to a Client Investment Advisory Services Commissions and Referral Fee Rule Commissions and Referral Fee Rule Application of the Conceptual Framework for Members in Public Practice and Ethical Conflicts Receipt of Commission Services Performed by a Member's Spouse for a Commission Referral of Products of Others Commission Arrangements with an Investment Advisory Services Nonattest Client that is Related to a Client Sale of Products to Clients Sale of Products to Clients Billing for Subcontractor's Services Advertising and other forms of solicitation Billing for a Subcontractor's Services Advertising and Other Forms of Solicitation Rule 173

31 Engagements obtained through efforts of third parties False, Misleading, or Deceptive Acts in Advertising or Solicitation Use of the AICPA Personal Financial Specialist Designation Advertising and Other Forms of Solicitation Rule Application of the Conceptual Framework for Members in Public Practice and Ethical Conflicts False, Misleading, or Deceptive Acts in Advertising or Solicitations False, Misleading, or Deceptive Acts in Advertising or Solicitations Use of AICPA-Awarded Designation Use of CPA Credential Use of the CPA Credential Confidential Client Information Revealing Client Information to Competitors Earlier Similar Management Consulting Service Study with Negative Outcome Information to Successor Accountant About Tax Return Irregularities Disclosure of Confidential Client Information Member Providing Services for Company Executives Confidential Client Information Rule Confidential Client Information Rule Application of the Conceptual Framework for Members in Public Practice and Ethical Conflicts Client Competitors Disclosing Information From Previous Engagements Disclosing Information From Previous Engagements Disclosing Information to Persons or Entities Associated with Clients Disclosing Information to Persons or Entities Associated with Clients 174

32 Use of a Third-Party Service Provider to Provide Professional Services to Clients or Administrative Support Services to the Member Confidential information and the purchase, sale, or merger of a practice Disclosure of Client Information to Trade Associations Disclosure of Confidential Client Information to Professional Liability Insurance Carrier Disclosure of Confidential Client Information in Legal or Alternative Dispute Resolution Proceedings Disclosing Information to a Third-Party Service Provider Disclosing Client Information in Connection with a Review of the Member's Practice Disclosure of Client Information to Third Parties Disclosing Client Information During Litigation Disclosing Client Information During Litigation Bank Director Disclosing Client Information in Director Positions Revealing Names of Clients Disclosing Client Names Form of Organization and Name Application of rules of conduct to members who own a separate business Partner Having Separate Proprietorship Disclosing Confidential Client Information as a Result of a Subpoena or Summons Form of Organization and Name Rule Form of Organization and Name Rule Application of Conceptual Framework for Members in Public Practice and Ethical Conflicts Ownership of a Separate Business Ownership of a Separate Business Nonproprietary Partners Partner Designation 175

33 Employment by Non-CPA Firm Responsibility for Non-CPA Partner A Member's Responsibility for Nonmember Practitioners A Member's Responsibility for Nonmember Practitioners Audit with Former Partner Attest Engagement Performed with a Former Partner Application of rule 505 to alternative practice structures Firm Name of Merged Partnerships Alternative Practice Structures Use of a Retired Partner's Name Non-CPA Partner A Practice with Non-CPA Partners Misleading Firm Names Misleading Firm Names Common Network Brand in Firm Name Use of a Common Brand Name in Firm Name Members in Business Introduction Conceptual Framework for Members in Business Members in Business Ethical Conflicts Integrity and Objectivity Integrity and Objectivity Rule Integrity and Objectivity Rule Application of the Conceptual Framework for Members in Business and Ethical Conflicts Conflicts of Interest Conflicts of Interest Acceptance or Offering of Gifts or Entertainment Knowing misrepresentations in the preparation of financial statements or records Subordination of judgment by a member Offering or Accepting Gifts or Entertainment Knowing Misrepresentations in the Preparation of Financial Statements or Records Subordination of Judgment 176

34 Obligations of a member to his or her employer's external accountant Applicability of rule 102 to members performing educational services Obligation of a Member to His or Her Employer's External Accountant Educational Services General Standards General Standards Rule General Standards Rule Application of the Conceptual Framework for Members in Business and Ethical Conflicts Competence Competence Submission of Financial Statements by a Member in Public Practice Submission of Financial Statements Compliance with Standards Compliance with Standards Rule Compliance with Standards Rule Application of the Conceptual Framework for Members in Business and Ethical Conflicts Accounting Principles Accounting Principles Rule Responsibility of employees for the preparation of financial statements in conformity with GAAP Status of FASB, GASB and FASAB interpretations Departures from Generally Accepted Accounting Principles Accounting Principles Rule Application of the Conceptual Framework for Members in Business and Ethical Conflicts Responsibility for Affirming that Financial Statements Are in Conformity With the Applicable Financial Reporting Framework Status of Financial Accounting Standards Board, Governmental Accounting Standards Board, Federal Accounting Standards Advisory Board, and International Accounting Standards Board Interpretations Departures From Generally Accepted Accounting Principles 177

35 Financial Statements Prepared Pursuant to Financial Reporting Frameworks Other than GAAP Financial Statements Prepared Pursuant to Financial Reporting Frameworks Other than GAAP Acts Discreditable Acts Discreditable Rule New Acts Discreditable Rule Application of the Conceptual Framework for Members in Business and Ethical Conflicts Discrimination and Harassment in Employment Practices Solicitation or disclosure of CPA examination questions and answers Failure to file tax returns or pay tax liability Negligence in the preparation of financial statements or records Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies on indemnification and limitation of liability provisions in connection with audit and other attest services Confidential Information Obtained From Employment or Volunteer Activities Discrimination and Harassment in Employment Practices Solicitation or Disclosure of CPA Examination Questions and Answers Failure to File a Tax Return or Pay a Tax Liability Negligence in the Preparation of Financial Statements or Records Governmental Bodies, Commissions, or Other Regulatory Agencies Indemnification and Limitation of Liability Provisions Confidential Information Obtained from Employment or Volunteer Activities 178

36 False, Misleading, or Deceptive Acts in Promoting or Marketing Professional Services False, Misleading, or Deceptive Acts in Promoting or Marketing Professional Services Use of CPA Credential Use of the CPA Designation Other Members Introduction Applicability Acts Discreditable Acts Discreditable Rule Discrimination and Harassment in Employment Practices Solicitation or disclosure of CPA examination questions and answers Failure to file tax returns or pay tax liability Confidential Information Obtained From Employment or Volunteer Activities Discrimination and Harassment in Employment Practices Solicitation or Disclosure of CPA Examination Questions and Answers Failure to File a Tax Return or Pay a Tax Liability Confidential Information Obtained from Former Employment or Previous Volunteer Activities False, Misleading, or Deceptive Acts in Promoting or Marketing Services Use of CPA Credential Use of the CPA Credential 179

37 60TH ANNUAL MNCPA TAX CONFERENCE November 17-18, 2014 Minneapolis Convention Center, Minneapolis, MN Please rate the following using the scale below: 5=Excellent, 4=Very Good, 3=Average, 2=Fair, 1=Poor E5. The New Ethics Code: What Tax People Need to Know Excellent Poor Relevancy of Topic Stated Objectives Met Overall Satisfaction Charles Selcer, CPA, CGMA, MBA Knowledge of Subject Presentation Skills Quality of Materials Engagement of Participants Do you have any additional feedback regarding the instructor and/or materials? If so, please share it with us. What would you like to learn at the 2015 conference? Who would you like to hear speak at the 2015 conference? Thank you for your feedback and suggestions. We appreciate your input. Minnesota Society of Certified Public Accountants