As a result of an investigation of alleged violations of the Code of Professional Conduct of the AICPA, Mr. DiCalogero, with the firm of Basile & DiCalogero, CPA’s, LLC, entered into a settlement agreement under the Joint Ethics Enforcement Program, effective November 5, 2015.
Information came to the attention of the Ethics Charging Authority (“ECA”) (comprised of the AICPA Professional Ethics Executive Committee) alleging a potential disciplinary matter with respect to Mr. DiCalogero’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. DiCalogero’s responses to the inquiries. The ECA charged Mr. DiCalogero with a violation of the AICPA Code of Professional Conduct as follows:
Rule 501 – Acts Discreditable
As the partner responsible for his firm’s peer review compliance, Mr. DiCalogero failed to ensure it complied with the requirements of the AICPA bylaws to undergo a peer review.
In consideration of the ECA forgoing further investigation of Mr. DiCalogero’s conduct as described above and in consideration of the ECA forgoing any further proceedings in the matter, Mr. DiCalogero agreed as follows:
a. To waive his right to a hearing under AICPA bylaws section 7.4.
b. To neither admit nor deny the above specified charge.
c. To his suspension from membership in the AICPA for a period of two years from the effective date of this agreement.
d. To complete a 12 hour continuing professional education (CPE) course (Getting Ready for Peer Review - Upcoming Peer Review: Is Your Firm Ready?) within 3 months of the effective date of this agreement and provide evidence of such completion (e.g., attendance sheets, course completion certificates, etc.).
e. To schedule a peer review of his firm’s system of quality controls for the year ended December 31, 2014. The review should be scheduled through his firm’s administering entity within 60 days of the effective date of this agreement. He must submit evidence of the scheduled system review by submitting a copy of the review team approval letter issued by his firm’s administering entity. In addition, his firm’s peer review will be due to the Subcommittee 30 days after it has been accepted.
f. That the ECA shall publish his name, the name of his firm, the charges, and the terms of this settlement agreement.
g. That the ECA shall provide a copy of this settlement agreement to the AICPA’s Peer Review Division staff, his peer review administering entities and his firm’s peer reviewer.
h. That the ECA shall monitor his compliance with the terms of this settlement agreement and initiate an investigation where the ECA finds there has been noncompliance.