Alabama CPA Professional Ethics and Regulatory Compliance: Ethical Leadership. Regulatory Responsibility. Public Trust. Serving Alabama with Integrity
 

Course Overview:

This course provides a comprehensive, practice-oriented examination of professional ethics for licensed Certified Public Accountants in the State of Alabama and is specifically designed to meet the 2-hour Ethics CPE requirement for Alabama CPAs. The course integrates the Alabama State Board of Public Accountancy Administrative Code, Chapter 30-X-6 – Rules of Professional Conduct with the AICPA Code of Professional Conduct, creating a unified and operational framework for ethical decision-making in contemporary CPA practice.

The course emphasizes application over theory, guiding participants through the full lifecycle of ethical compliance—from regulatory interpretation and engagement acceptance through execution, documentation, and enforcement exposure. Core topics include professional conduct, confidentiality, independence, contingent fees, commissions, conflicts of interest, and supervisory responsibility under Alabama law. Each area is analyzed through both a regulatory lens and a practical risk-management perspective, ensuring that CPAs understand not only what the rules require, but how those requirements apply in real-world scenarios.

A dedicated module addresses the ethical implications of Artificial Intelligence (AI) in CPA practice, including confidentiality risks, data governance, professional competence, due care, and accountability. The course examines how emerging technologies intersect with established ethical standards, reinforcing that innovation must operate within the boundaries of professional responsibility.

The course further develops ethical judgment through three in-depth case studies that simulate complex professional scenarios involving AI-related confidentiality exposure, contingent fee arrangements and independence concerns, and overreliance on automated

audit tools. These case studies are designed to require active analysis, application of the AICPA conceptual framework, and alignment with Alabama-specific rules, reinforcing the CPA’s ability to identify, evaluate, and resolve ethical dilemmas under real-world conditions.

The course concludes with a focused examination of enforcement, discipline, and professional liability, emphasizing how ethical failures are evaluated by regulators and the importance of documentation, professional skepticism, and defensible decision-making.

Overall, this course equips Alabama CPAs with the technical knowledge, analytical framework, and practical tools necessary to navigate ethical challenges, maintain compliance with state and professional standards, and uphold the public trust in an increasingly complex and technology-driven environment.

Learning Objectives:

Upon completion of this course, participants will be able to:

1. Interpret and apply the Alabama State Board of Public Accountancy Administrative Code, Chapter 30-X-6 – Rules of Professional Conduct to real-world CPA practice scenarios

2. Analyze and reconcile ethical requirements under the AICPA Code of Professional Conduct with Alabama-specific rules, applying the more restrictive standard where conflicts exist

3. Evaluate independence, contingent fee, commission, and conflict-of-interest situations to determine compliance with Alabama regulatory requirements

4. Assess confidentiality obligations, including client data protection, record handling, and third-party data exposure risks in traditional and technology-enabled environments

5. Apply the AICPA conceptual framework to identify ethical threats, evaluate their significance, and determine appropriate safeguards in complex engagements

6. Analyze ethical risks associated with the use of Artificial Intelligence (AI) in CPA practice, including impacts on confidentiality, professional competence, due care, and accountability

7. Determine appropriate professional actions in response to ethical dilemmas involving client relationships, compensation structures, and reliance on automated tools

8. Evaluate enforcement exposure, disciplinary processes, and professional liability risks under Alabama law to support defensible decision-making and regulatory compliance

9. Develop a structured, documented approach to ethical decision-making that demonstrates due care, professional skepticism, and adherence to both Alabama rules and AICPA standards