As a result of an investigation of alleged violations of the codes of professional conduct of the AICPA and the New Jersey Society of CPAs, Mr. Calabro, with the firm of Chirico & Calabro, LLC, entered into a settlement agreement under the Joint Ethics Enforcement Program effective September 14, 2016.
Information came to the attention of the Ethics Charging Authority (“ECA”) (comprised of the AICPA Professional Ethics Executive Committee and the New Jersey Society of CPAs Professional Ethics Committee) alleging a potential disciplinary matter with respect to Mr. Calabro’s failure to ensure his firm obtained an appropriate peer review.
The ECA reviewed the allegations in the referral and information publicly available on the United States Department of Labor’s EFAST website and Mr. Calabro’s responses to such allegations. The ECA charged Mr. Calabro with violations of the AICPA and the New Jersey Society of CPAs 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. Calabro failed to ensure it complied with state board requirements and those of the AICPA and the New Jersey Society of CPAs to undergo a peer review.
In consideration of the ECA forgoing further investigation of Mr. Calabro’s conduct as described above and in consideration of the ECA forgoing any further proceedings in the matter, Mr. Calabro agreed as follows:
a. To waive his right to a hearing under AICPA bylaws section 7.4 and the New Jersey Society of CPAs’ bylaws section 8(e).
b. To neither admit nor deny the above specified charges.
c. To his suspension from membership in the AICPA and New Jersey Society of CPAs for a period of two years from the effective date of this agreement.
d. Mr. Calabro agrees to schedule a peer review of his firm’s practice for the year ended December 31, 2014 within 60 days of signing this agreement and to submit that peer review to the ECA within 6 months of it being scheduled.
e. That the ECA shall publish his name, the name of his firm, the charges, and the terms of this settlement agreement.
f. To comply immediately with professional standards applicable to the professional services he performs.