Ethics and Standards of Conduct for Virginia CPAs. Course #4225J Exam Packet
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1 Ethics and Standards of Conduct for Virginia CPAs Course #4225J Exam Packet
2 ETHICS AND STANDARDS OF CONDUCT FOR VIRGINIA CPAS (COURSE #4225J) COURSE DESCRIPTION This course is designed to meet the specific ethics requirements for the state of Virginia. Using the official state ethics outline, this course provides high-level information on VBOA fee changes, enforcement cases, AICPA ethics updates, and documentation standards. This course also provides a brief overview of Virginia s top ten issues for Uses the materials entitled Ethics and Standards of Conduct for Virginia CPAs. No prerequisites. Course level: Basic. Course #4225J 2 CPE hours. LEARNING ASSIGNMENTS AND OBJECTIVES As a result of studying each assignment, you should be able to meet the objectives listed below each individual assignment. ASSIGNMENT SUBJECT 1 VBOA Fee Changes Enforcement Cases AICPA Professional Ethics Executive Committee (PEEC) Update AICPA Accounting & Review Services Committee (ARSC) Update Documentation Virginia s Top Issues for 2013 Study the course materials from 1 to 43 Complete the review questions at the end of the course material Answer the final exam questions 1 to 10 Objectives: To identify the new VBOA fee changes To recognize the facts in the required enforcement case handouts To recognize changes to AICPA ethics interpretations and rulings To distinguish the types of documentation required for various types of engagements To list Virginia s top ten issues for 2013 ASSIGNMENT 2 Complete the Answer Sheet and Course Evaluation and mail to PES for credit NOTICE This course and test have been adapted from materials and information contained in materials entitled Ethics and Standards of Conduct for Virginia CPAs and any supplemental material provided. This course is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice and assumes no liability whatsoever in connection with its use. Since laws are constantly changing, and are subject to differing interpretations, we urge you to do additional research and consult appropriate experts before relying on the information contained in this course to render professional advice. Professional Education Services, LP 2013 Program publication date 2/1/13 Exam Page -1
3 ETHICS AND STANDARDS OF CONDUCT FOR VIRGINIA CPAS (COURSE #4225J) EXAM OUTLINE COURSE EXPIRATION DATE: Per AICPA and NASBA standards, this course must be completed within one year from the date of purchase. TEST FORMAT: The following final exam, consisting of 10 multiple choice questions, is based specifically on the material included in this course. The answer sheet must be completed and returned to PES for CPE certification. You will find the answer sheet at the back of this exam packet so that you may easily remove it and use it while taking your test. LICENSE RENEWAL INFORMATION: The Ethics and Standards of Conduct for Virginia CPAs course (#4225J) qualifies for 2 CPE hours. PROCESSING: Your exam will be graded promptly. You must score 70% or better to pass. When you pass, your certificate of completion will be mailed. If you do not pass, we will give you a courtesy call to inform you of this and then another answer sheet will be sent to you free of charge. GRADING OPTIONS: Please choose only one of the following. There is no additional charge for any of these grading options. Make sure to fill out your answer sheet completely prior to submitting it. ONLINE GRADING Visit our website at Login to your account (if you are a first-time user you must set up a new user account). Go to the MY CPE tab and click the My CPE Exams in Progress folder. If your exam is not already located in this folder, click Add Exam Previously Purchased and follow the instructions. MAIL Your exam will be graded and your certificate of completion mailed to you the same day we receive it. Your certificate will be dated according to the postmark date; therefore, you do not need to overnight your exam. Please mail your answer sheet to: Professional Education Services, LP 4208 Douglas Blvd., Ste 50 Granite Bay, CA FAX Your exam will be graded and you will be contacted either via phone or fax with your results within 4 business hours of receipt. A copy of your graded exam and certificate of completion will be mailed to you the same day we receive it. Your certificate will be dated according to the fax date. If you choose to fax your exam, please do not mail it. Your fax will serve as the original. Please refer to the attached answer sheet for further instructions on fax grading. Fax number (916) Thank you for using Professional Education Services. We appreciate your business!! Exam Page -2
4 ETHICS AND STANDARDS OF CONDUCT FOR VIRGINIA CPAS (COURSE #4225J) FINAL EXAM The following questions are multiple choice. Please indicate your choice on the enclosed Answer Sheet. 1. Which of the following is correct regarding the 2013 fee changes established by the VBOA: a) both the regular and late license renewal fees increased b) the late renewal fee increased, but the on time renewal fee decreased c) there were no substantive changes to the fee schedule d) the VBOA is waiving most fees in 2013 in order to reduce an excessive fund balance 2. Considering the case studies from this course, what is the largest monetary penalty the Board administered: a) $500 b) $10,000 c) $50,000 d) $100, The Professional Ethics Executive Committee (PEEC) is charged with issuing proposed ethics additions, deletions, and revisions. Which of the following is true regarding PEEC activity in 2012 as discussed in this course: a) PEEC proposed several new rules b) PEEC proposed two new interpretations, one revised interpretation and the deletion of three ethics rulings c) PEEC did not issue any proposals d) PEEC proposed six new interpretations 4. Changes have been proposed regarding a CPA s association with unaudited financial statements. Which of the following is true regarding the proposed changes to the engagement letter when a CPA is engaged to perform a compilation: a) the CPA must document the understanding with management regarding the services to be provided b) the CPA must prepare an engagement letter, but it need not be signed c) the CPA must prepare and sign an engagement letter, but the letter need not be signed by the client d) the engagement letter or other suitable form of written communication must be signed by the accountant or accountant s firm as well as by the management of the client 5. Rule 501 outlines a CPA s obligations to respond to a client s request for records. Which of the following is true regarding client records under Rule 501: a) the terms member-prepared records and member s work products are synonymous b) client-provided records include both hard copy and electronic format records that were provided to the CPA by or on behalf of the client c) the term member s work products includes all types of working papers prepared by the CPA d) the term member-prepared records would include items such as tax returns and audit reports Exam Page -3
5 6. An individual CPA license must be renewed according to rules promulgated by the VBOA in order to remain valid. Which of the following is true regarding renewing an individual CPA license: a) all licensed Virginia CPAs must renew their individual license annually b) the VBOA sends printed renewal notices to each licensee about 60 days prior to the license expiration date c) if a CPA renews his or her CPE late because he or she did not receive the VBOA renewal notice, the CPA will not be required to pay the late renewal fee d) a license renewal may be valid for up to three years depending upon when the license was first issued 7. A firm CPA license must be renewed according to rules promulgated by the VBOA in order to remain valid. Which of the following is true regarding renewing a firm CPA license: a) a firm CPA license is generally valid for two years b) a CPA firm license generally expires on the last day of the month in which the license was originally issued c) the VBOA prefers that renewals be submitted via the U.S. Postal Service d) the best way to find out when a CPA firm license expires is to send a written request to the VBOA 9. CPE documentation should not be submitted to the VBOA during the license renewal process. However, licensees must retain CPE documentation for a minimum of calendar years preceding the current calendar year. a) 2 b) 3 c) 5 d) Which of the following may lawfully use the CPA title in Virginia: a) a licensee that retired in good standing and no longer holds a CPA license b) an educator at a Virginia university licensed as a Chartered Accountant but who does not hold a CPA license in any state c) a licensee whose license expired three months ago and intends to file for late renewal before the end of the current year d) a CFO working for a major oil company in Virginia that holds a valid CPA license in North Carolina and one other substantially equivalent state Congratulations you ve completed the exam! 8. Nash, CPA has been a licensed Virginia CPA for 10 years and provides services to the public. Nash, CPA is preparing to renew his CPA license. Nash, CPA must complete a minimum of CPE hours in the current calendar year in order to renew. a) 0 b) 2 c) 8 d) 20 Exam Page -4
6 ETHICS AND STANDARDS OF CONDUCT FOR VIRGINIA CPAS #4225J (2 CPE hours) ANSWER SHEET (2/13) Important Note: For certification, this answer sheet must be completed and submitted to PES for grading within one year from the date of purchase. Please use black ink and print for quicker processing thank you. Name (as it appears on your license) Address City State Zip Home Work Daytime Phone ( ) address License Number State Expiration Date CPA, CFP, EA (circle one) If course was ordered by another party, please indicate name here: GRADING OPTIONS Please choose only ONE of the following: ONLINE GRADING Visit our website at o Login to your account (if you are a first-time user, you must set up a new user account). o Go to the MY CPE tab and click the My CPE Exams in Progress folder. o If your exam is not already located in this folder, click Add Exam Previously Purchased and follow the instructions. Mail Mail your exam to: PES, 4208 Douglas Blvd., Ste 50, Granite Bay, CA Fax Fax your exam to (916) and choose one of the following options: Please: mail my results only or fax phone my results to: ( ) PLEASE INDICATE YOUR ANSWER BY FILLING IN THE APPROPRIATE CIRCLE A B C D A B C D 1. O O O O 6. O O O O 2. O O O O 7. O O O O 3. O O O O 8. O O O O 4. O O O O 9. O O O O 5. O O O O 10. O O O O Please complete the attached course evaluation your opinion is extremely valuable. Exam Page -5
7 Ethics and Standards of Conduct for Virginia CPAs #4225J - Course Evaluation Rate on a scale of 1-10 with 1 being poor and 10 being excellent. 1. The course met the course objectives described in the promotional material. 2. The course was up to date, held my interest, was timely, and effective. 3. The course materials were understandable, valuable, and suitable for a correspondence course. 4. The amount of advance knowledge and stated prerequisites were appropriate. 5. The completion time was appropriate for the number of credits allowed. 6. The course met my professional education needs. Please answer the following questions mark/rate any and all that may apply 1. How would you rate PES s order desk customer service 2. What can PES do to keep you as a valued customer? 3. Any other comments regarding this course or our company would be appreciated. 4. What other courses/subjects would you like to see PES offer in the future? Mail to: Professional Education Services, LP 4208 Douglas Blvd., Ste 50, Granite Bay, CA Exam Page -6
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