Red Milestone - TRUST

These are scenarios for the blue accountability milestone - related to state specific statutes, laws and administrative codes.

You can ask your teammates for help in answering these questions and you can also use the resource guide or links to find the answers. The key to success is discussing the scenarios with your teammates and sharing your knowledge with each other.

Abbreviations used include:
  • OBA - Oregon Board of Accountancy
  • OAR - Oregon Administrative Rules
  • ORS - Oregon Revised Statutes
  • CPC - AICPA Code of Professional Conduct
You will have 25 minutes to complete as many of these questions as possible. Work as a team to read the questions, discuss the ethical dilemmas and use the resource guide to find answers to questions you don't know how to answer.

Once you and your teammates agree on the answer type your answer into the box provided and submit it.

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* 1. Big Boss reminds you to use the Resource Guide on your table to look up key elements of your state's Revised Statutes, Administrative Code or other laws related to CPAs.  To find this answer you can use your cell phone or the Resource Document containing links to the various resources available to you as a CPA.

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* 2. Your certificate is revoked in another state because you decided to maintain only the CPA registration in the state where you work. You never canceled your registration in the other state. 

Is this something you are required to report to your State Board? If your team accepts your response earn 3 PEPs.

AZ:  A.A.C. R4-1-456
OR:  OAR 801-010-0080 and ORS 673.170(2)(k) 

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* 3. You've just completed a 90-minute program on the latest updates in State revised statutes and administrative codes.

How many continuing education credits can you earn for this program? Earn 4 PEPs for your answer.

AZ: A.A.C R4-1-453
OR: OAR 801-040-0050 (1)

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* 4. You overheard a teammate divulging confidential information about a client to a friend at the coffee shop.  This information is potentially damaging to the client.

What would you do about this?  If all team members agree with your response earn 4 PEPs.

AZ: ARS 32-749
OR: ORS 673.385, OAR 801-030-0015 and OAR 801-030-0005 (c)

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* 5. You overhear a colleague bragging on the phone about leaving out critical information on his CPA certificate application. 

Does this action constitute fraud or deceit punishable by revocation or suspension of the certificate?  Why or why not? Earn 3 PEPs for your response.

AZ: ARS 32.741
OR: OAR 801-030-0020  and 673.170(2)(a)

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* 6. As accountants we are expected to maintain confidentiality of our clients' and company proprietary information. 

What is considered to be confidential information, and how does this build or enhance trust?

AZ:  ARS 32-749 and A.A.C. R4-1-455.02
OR:  801-030-0005 (2)(c)

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* 7. Big Boss suggests that if a scenario does not assign PEPs you may negotiate with your teammates to recognize the value of your effort.  Don't get too outrageous as you will have to report your total PEPs to the entire group. And don't spend too much time negotiating!  This program is won or lost by Total PEPs accumulated both as individual and team!

Enter the names of each teammate present at the table at this time.

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* 8. How would this training prepare new accountants for the responsibility of building and maintaining public trust? If you can identify 2 elements that would prepare new accountants adequately earn 5 PEPs.

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* 9. Your brother has started his own business.  He asks you to prepare his financial statements for him.

Is this considered to be accounting services that require a CPA registration or license? Why or why not?   If you can explain your answer earn 5 PEPs.

AZ:  32-701.1, 32-701.21
OR: ORS 673.010 and 673.320

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* 10. You ask your CPA for a recommendation on landscaping services and he gives you one. You find out later that your CPA receives referral fees from the landscaper but does not perform accounting services for them.

Is your CPA allowed to accept this fee? if so, under what conditions? Earn 3 PEPs for your answer.

AZ:  A.A.C. R4-1-455(B)
OR:  ORS 673.345 and OAR 801-030-0005 (3)