As a result of an investigation of alleged violations of the codes of professional conduct of the AICPA and the Connecticut Society of CPAs, Mr. Frimpong, with the firm of Frimpong & Company, PC, entered into a settlement agreement under the Joint Ethics Enforcement Program effective August 8, 2016.
Information came to the attention of the Ethics Charging Authority (“ECA”) (comprised of the AICPA Professional Ethics Executive Committee and the Connecticut Society of CPAs Professional Ethics Committee) alleging a potential disciplinary matter with respect to Mr. Frimpong’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. Frimpong’s responses to such allegations. The ECA charged Mr. Frimpong with violations of the AICPA and the Connecticut Society of CPAs’ codes of professional conduct as follows:
Rule 501, Interpretation 501- 5 – Failure to follow requirement of governmental bodies, commissions, or other regulatory agencies
As the partner responsible for his firm’s peer review compliance, Mr. Frimpong failed to ensure it complied with state board requirements and those of the AICPA and the Connecticut Society of CPAs to undergo a peer review.
In consideration of the ECA forgoing further investigation of Mr. Frimpong’s conduct as described above and in consideration of the ECA forgoing any further proceedings in the matter, Mr. Frimpong agreed as follows:
a. To waive his right to a hearing under AICPA bylaws section 7.4 and the Connecticut Society of CPAs’ bylaws section X (10.3).
b. To neither admit nor deny the above specified charges.
c. To his suspension from membership in the AICPA and Connecticut Society of CPAs for a period of two years from the effective date of this agreement.
d. To comply immediately with professional standards applicable to the professional services he performs and to submit evidence of such compliance.
e. To provide an attestation immediately, then every six months for a period of three years that he is no longer performing audits or reviews. If he returns to performing such work, he agrees to the following:
· To complete a 9 hour continuing professional educational course (Get Ready for Peer Review: Is Your Firm Ready?) within 3 months of returning to such work and provide evidence of such completion (e.g., attendance sheets, course completion certificates, etc.).
· To schedule a peer review of his firm’s system of quality control for the year ended December 31, 2015. The review should be scheduled through his firm’s administering entity within 60 days of the effective date of this agreement. Mr. Frimpong must submit evidence of the scheduled 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 ECA ten months after being scheduled.
f. 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.
g. To be prohibited from performing peer reviews in any capacity until the directives in this letter have been completed. This restriction will be communicated to his peer review oversight agency.h. That the ECA shall publish his name, the name of his firm, the charges, and the terms of
this settlement agreement.