Texas State Board of Public Accountancy
Meeting Education Requirements for the
Uniform CPA Examination
Mary B. Curtis
State of Texas Administrative Code
Title 22, Part 22, Chapter 511, Subchapter C, Rule 511.58
• the board requires that 3 passing semester hours be earned as a
result of taking a course in ethics.
• The course must be taken at a recognized educational institution
and should provide students with a framework of ethical reasoning,
professional values and attitudes for exercising professional
skepticism and other behavior that is in the best interest of the
public and profession.
• The ethics program should provide a foundation for ethical
reasoning and include the core values of integrity, objectivity and
independence
• taught by an instructor who has not been disciplined by the board
for a violation of the board's rules of professional conduct unless
waived by the board.
Approved Ethics Courses
An approved ethics course will be included on the list on the Board's webpage along with
the name of the instructor for the course. Instructors are expected to:
• Teach from and adhere to the syllabus and class schedule that is accepted by
the Texas State Board of Public Accountancy.
• Provide students with a framework of ethical reasoning, professional values
and attitudes for exercising professional skepticism and other behavior that is
in the best interest of the public and profession.
• Provide students with a foundation for ethical reasoning that includes the core
values of integrity, objectivity, and independence.
• Conduct the class in a professional and ethical manner that models behavior
that students may be expected to display as a professional accountant.
• Provide guidance to students concerning the ethical rules and regulations of
the Board and/or the CPA regulatory agency in the state, as well as national
regulatory and professional accounting organizations.
• Adhere to the statutory requirements of the Public Accountancy Act and the
Board's Rules of Professional Conduct, as well as all other rules promulgated
by the Board.
Ethics Courses Requirements
• The course should provide students with a framework of ethical
reasoning, professional values and attitudes for exercising
professional skepticism and other behavior that is in the best
interest of the public and profession.
• The course should provide a foundation for ethical reasoning and
include the core values of integrity, objectivity, and independence.
An ethics course should cover the following topics:
• Theory of ethics - 70% of the course, at a minimum, is similar to any
ethics course, in addressing
• Ethical theory - 10%
• Ethical reasoning - 15%
• Values
• Integrity - 15%
• Objectivity - 15%
• Other core values - 15%
• Accounting specific - 25% should be specific to an ethics course in
accounting
• Independence (as it pertains to accounting) - 15%
• AICPA, SEC, and the Board of Accountancy's ethics rules - 10%
• Other topics - 5%
How we meet the course requirements:
• To address these topics we have used Moral Leadership and Ethical
Decision Making, by Cherrington and Cherrington, CHC Forecast, Inc.,
2000, as our textbook.
• As this focuses on business, but not accounting, we supplement with
numerous additional sources. State says “Topical coverage should
incorporate a majority of accounting case studies and moral dilemmas
supplemented by business and general case studies and moral dilemmas.”
Theory of Ethics (70%) - Focus of this coverage has been on three
dimensions:
• Moral Awareness – knowing when you are facing an ethical dilemma
and recognizing the ethical dimensions of any situation
• Moral Decision-making – knowing how to identify the appropriate
course of actions
• Moral Motivation – choosing the right actions even when it is difficult
• Values play a role in all dimensions, such as:
• Integrity, Objectivity, Independence
• Moral character
• Moral leadership
• Thus, I both begin the semester having the students write their
Statement of Personal Moral Principles and have them update this
statement at the end of the semester
Ethical Dilemma Resolution Framework
1. Determine the facts and identify the ethical dilemma
involved
2. Determine the affected parties and identify their rights
3. Determine the party with the most important rights
4. Identify the applicable laws or code of conduct rules
5. Develop alternative courses of action
6. Determine the possible consequences of each proposed
course of action and estimate their likelihood
7. Decide which course of action best upholds your personal
values and defend your selection
Ethics in the accounting profession (25%):
• Independence (as it pertains to accounting)
• AICPA, SEC, SOX, Dodd-Frank
• Texas Board of Accountancy's ethics rules
• I also cover corporate codes of conduct here, having students
compare the codes of two companies in the same industry
Other topics (5%): Dealing with moral failure
•
•
Others’ failure – whistleblowing
Your own failure – taking responsibility, apologizing
Weakness in this approach – implementing chosen solution
Giving Voice to Values - Rather than a focus on ethical
analysis, this curriculum focuses on ethical
implementation and asks the question: “What if I were
going to act on my values? What would I say and do?
How could I be most effective?”
GVV starts at: “What if you were going to act on your
values? What would you do and say?” And then focuses
on the tools for doing so.
Online, six modules – students then write up how they will
use the GVV materials to implement their EDRF case
Summary of Course Grade:
Course activities carry the following weights:
EDRF Case
GVV Case
In-Class Activities
Class Participation
Examinations
50
25
40
35
200
Attendance is required, participation is required, each week’s case(s)
must be written up and turned in at the beginning of class
Exams are a combination of multiple choice and discussion. Example:
Which system of social justice most resembles how health insurance
is used?
a. Equality
b. Equity
c. Need-based
d. Majority vote
e. Specialized expertise
Support:
Links for related rules and documents:
• http://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir
=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=22&pt=22&ch=511&rl=58
• http://www.tsbpa.state.tx.us/education/ethic-course-requirements.html
Thank you.
An ethics course should cover the following topics:
•
•
•
•
•
•
•
•
Ethical reasoning - 15%
Integrity - 15%
Objectivity - 15%
Independence (as it pertains to accounting) - 15%
Other core values - 15%
AICPA, SEC, and the Board of Accountancy's ethics rules - 10%
Ethical theory - 10%
Other topics - 5%
An ethics course should cover the following topics:
•
•
•
•
•
•
•
•
Ethical reasoning - 15%
Integrity - 15%
Objectivity - 15%
Independence (as it pertains to accounting) - 15%
Other core values - 15%
AICPA, SEC, and the Board of Accountancy's ethics rules - 10%
Ethical theory - 10%
Other topics - 5%