Lopez-Lima Levi, Raimundo of Coral Gables, FL

As a result of an investigation of alleged violations of the Code of Professional Conduct of the AICPA, Mr. Levi, with the firm of Lopez Levi & Associates, LLC, entered into a settlement agreement under the Joint Ethics Enforcement Program effective May 19, 2016.

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. Levi’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 relating to the audit of the financial statements of an employee benefit plan audit for the year ended December 31, 2011 and Mr. Levi’s responses to such allegations. The ECA charged Mr. Levi with violations of the AICPA Code of Professional Conduct as follows:

Rule 202 – Compliance with Standards

The audit report does not include all required wording related to supplemental schedules presented with the financial statements (SAS 119; AU 551).

Rule 203 – Accounting Principles

  1. Receivables are not separated between participant and employer contributions (FASB ASC 962-310-45-1).

  2. The notes in the financial statements omit a disclosure of investments representing 5% or more of net assets available (FASB ASC 962-325-45-7).

  3. The following errors were identified in disclosures required for investments presented at fair value on a recurring basis (FASB ASC 820-20-50):

    1. Notes receivable from participants are incorrectly presented in the fair value disclosure.

    2. Mutual funds are not disaggregated into further classifications.

Rule 501 Acts Discreditable

As the partner responsible for his firm’s peer review compliance, Mr. Levi failed to ensure it complied with the requirements of the AICPA to undergo a peer review.


Rule 501 - Interpretation 501-5 – Failure to follow requirement of governmental bodies, commissions, or other regulatory agencies

The schedule of assets (held at end of year) fails to identify parties-in-interest (29 CFR 2520.103.11).



In consideration of the ECA forgoing further investigation of Mr. Levi’s conduct as described above and in consideration of the ECA forgoing any further proceedings in the matter, Mr. Levi agreed as follows:

  1. To waive his rights to a hearing under AICPA bylaws section 7.4.

  2. To neither admit nor deny the above specified charges.

  3. To his suspension from membership in the AICPA for a period of two years from the effective date of this agreement.

  4. To comply immediately with professional standards applicable to professional services he performs and submit evidence of such compliance.

  5. To complete 26 hours of continuing professional education (CPE) courses (Auditing Employee Benefit Plans; Annual Update for Accountants and Auditors; Upcoming Peer Review: Is Your Firm Ready?) within twelve months of the effective date of this agreement and provide evidence of such completion (e.g., attendance sheets, course completion certificates, etc.).

  6. To comply with directive d. above, submit six months after the completion of CPE above, a list of the highest level of engagements (audits, reviews and compilations with note disclosures) that he performed in the six month period following completion of the CPE above. The following information should be included regarding the engagements listed: number of hours spent on the engagement, his role and total hours on each engagement, level of professional services rendered, type of report issued, type of organization, and whether it was an initial engagement. The ECA will select one of these engagements for review. He will be informed of this selection and will be asked to submit information to include a copy of his report, the financial statements, and working papers related to that engagement for review by ECA. The ECA may extend the period to select an engagement to ensure a suitable selection is available. A peer review undergone by his firm would not exempt him from this requirement.

    He agrees to inform the ECA of any changes in the composition of his practice or changes in his role until a suitable work product is selected for review. If his practice changes and he is no longer involved with audits, reviews, or compilations with note disclosures, or no longer acts in a supervisory capacity on such engagements, he must inform the ECA of this change and the ECA may require that he attest every six months for three years as to the nature of his practice. If, during the three-year attestation period he returns to performing such engagements, he must inform the ECA of this change and the ECA will select a suitable work product for review.

    After an initial review of such report, financial statements, and working papers, the ECA may decide he has substantially complied with professional standards and close this matter. Or, the ECA may decide that an ethics investigation of the engagement he submitted is warranted. If at the conclusion of the investigation, the ECA finds that professional standards have in fact been violated, the ECA may refer the matter to the trial board for a hearing or take such other action as it deems appropriate.

  7. To submit within 30 days of the effective date of this agreement, evidence that his firm has submitted an application to join the Employee Benefit Plan Audit Quality Center. Upon membership in that Center, he agrees that his firm will comply with the directives of that center.

  8. To be prohibited from serving as a member of any ethics or peer review committee of the AICPA or the state CPA societies until he has completed all directives in this letter. This restriction will be communicated to those responsible for appointments to such committees. In addition, if he applies to join any other committee of the AICPA he must inform those responsible for such appointments of the results of this ethics investigation. This requirement shall remain in effect until the ECA determines that the work product submitted to comply with directive f, above substantially complies with professional standards.

  9. To be prohibited from teaching continuing professional education courses approved by the AICPA or the state societies in the areas of employee benefit plans and accounting and auditing until he has completed all of the directives included in this letter. This restriction will be communicated to those responsible for engaging CPE instructors at the AICPA. This requirement shall remain in effect until the ECA determines that the work product submitted to comply with directive f. above substantially complies with professional standards.

  10. To be prohibited from performing peer reviews in any capacity until the directives in this letter have been completed. This prohibition will remain in effect until the ECA determines that the work product he submitted to comply with f. above substantially complies with professional standards. This restriction will be communicated to his peer review oversight agency.

  11. To schedule a system peer review of his firm. The review should be scheduled through his firm’s administering entity within 60 days of the effective date of this agreement and 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. The peer review must cover a one year period that ends December 31, 2015. His firm’s accepted peer review documents will be due to the ECA within 10 months of the date it is scheduled.

  12. That the ECA shall publish his name, the name of his firm, the charges, and the terms of this settlement agreement.