Current through Reg. 49, No. 38; September 20, 2024
(a) The content of an ethics course designed
to satisfy the four CPE credit ethics CPE requirements of §
523.130
of this chapter (relating to Ethics Course Requirements) must be submitted to
the CPE committee of the board for initial approval and upon request
thereafter. The primary objectives of the ethics course shall be to:
(1) encourage the licensee to become educated
in the ethics of the profession;
(2) convey the intent of the board's Rules of
Professional Conduct in the licensee's performance of professional accounting
services, and not mere technical compliance;
(3) apply ethical judgment in interpreting
the rules and provide for a clear understanding of the public interest. The
public interest shall be placed ahead of self-interest, even if it means a loss
of job or client;
(4) emphasize the
ethical standards of the profession, as described in this section;
and
(5) review and discuss the
board's Rules of Professional Conduct and their implications for persons in a
variety of practices, including at least one example from subparagraph (A) of
this paragraph and at least one example from either subparagraph (B) or (C) of
this paragraph:
(A) a licensee engaged in the
client practice of public accountancy who performs attest and non-attest
services, as defined in §
501.52 of
this title (relating to Definitions); and
(B) a licensee employed in industry who
provides internal accounting and auditing services; or
(C) a licensee employed in education or in
government accounting or auditing.
(b) To meet the objectives of subsection (a)
of this section, a course must be four hours in length and its components
should be approximately:
(1) 25% on ethical
principles and values;
(2) 25% on
ethical reasoning and dilemmas;
(3)
15% on the board's Rules of Professional Conduct with special focus on recent
changes in those rules and including information on the peer assistance
available to Texas CPAs, CPA candidates and accounting students with alcohol or
other substance abuse, depression, stress or other mental health issues through
the Accountants Confidential Assistance Network (ACAN); and
(4) 35% on case studies that require
application of ethical principles, values, and ethical reasoning within the
context of the board's Rules of Professional Conduct.
(c) Course content shall be approved only
after demonstrating, either in a live instructor format, a blended program
format, or interactive (computer based) format, as defined in §
523.102(c)(1)
of this chapter (relating to CPE Purpose and Definitions), that the course
contains the underlying intent established in the following criteria:
(1) the course shall be designed to teach
CPAs to achieve and maintain the highest standards of ethical conduct through
ethical reasoning and the core values of the profession: integrity,
objectivity, and independence, as ethical principles in addition to rules of
conduct;
(2) the course shall
address ethical considerations and the application of the board's Rules of
Professional Conduct to all aspects of the professional accounting work whether
performed by CPAs in client practice or CPAs who are not in client practice;
and
(3) the course shall convey the
spirit and intent of the board's Rules of Professional Conduct in the
licensee's performance of accounting services, and not mere technical
compliance.
(d) Live
ethics courses must be taught in one single four-hour session, including one
10-minute break each hour or its equivalent.
(e) Ethics courses may be reevaluated every
three years or as required by the CPE committee. Updated versions of the course
and any other course materials, such as course evaluations, shall be provided
when requested by the committee for the course to be continued as an approved
course.
(f) At the conclusion of
each self-study course, the sponsor shall administer a test to determine
whether the program participants have obtained a basic understanding of the
course content, including the need for a high level of ethical standards in the
accounting profession.
(g) A
sponsor of an ethics course approved by the board pursuant to this section
shall comply with the board's rules concerning sponsors of CPE and shall
provide its advertising materials to the board's CPE committee for approval.
Such advertisements shall:
(1) avoid
commercial exploitation;
(2)
identify the primary focus of the course; and
(3) be professionally presented and
consistent with the intent of §
501.82 of
this title (relating to Advertising).
