As a result of an investigation of alleged violations of the Code of Professional Conduct of the AICPA and the Society of Louisiana CPAs, Mr. Kennedy, with the firm of Greg A. Kennedy, CPA, entered into a settlement agreement under the Joint Ethics Enforcement Program, effective July 13, 2015.
Information came to the attention of the Ethics Charging Authority (“ECA”) (comprised of the AICPA Professional Ethics Executive Committee and the Society of Louisiana CPAs Professional Ethics Committee) alleging a potential disciplinary matter with respect to Mr. Kennedy’s failure to ensure his firm obtained an appropriate peer review.
The ECA reviewed the allegations in the referral, publicly available information from the United States Department of Labor’s EFAST website and Mr. Kennedy’s responses to such allegations. Based on this information, there appears to be prima facie evidence of a violation of the AICPA and the Society of Louisiana CPA’s Codes of Professional Conduct as follows:
Rule 501, Interpretation 5 – Failure to Follow Requirements of Governmental Bodies, Commissions, or Other Regulatory Agencies
As the partner responsible for his firm’s peer review compliance, Mr. Kennedy failed to ensure it complied with state board requirements and those of the AICPA and the Society of Louisiana CPAs to undergo a peer review.
In consideration of the ECA forgoing further investigation of Mr. Kennedy’s conduct as described above, and in consideration of the ECA forgoing any further proceedings in this matter, Mr. Kennedy agreed as follows:
a. To waive his rights to further investigation of this matter in accordance with the Joint Ethics Enforcement Program (JEEP) Manual of Procedures.
b. To waive his rights to a hearing under AICPA bylaws section 7.4 and the Society of Louisiana CPA’s bylaws Article V: 5(c).
c. To neither admit nor deny the above specified charges.
d. To his suspension of membership in the AICPA and the Society of Louisiana CPAs for a period of two years from the effective date of this agreement.
e. That the ECA shall publish his name, the name of his firm, the charges, and the terms of this settlement agreement.