Porter, Suzette E. of Miramar, FL

As a result of an investigation of alleged violations of the codes of professional conduct of the AICPA, Ms. Porter, with the firm of BAS Partners, LLC, entered into a settlement agreement under the Joint Ethics Enforcement Program effective July 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 Ms. Porter’s failure to ensure her 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 Ms. Porter’s responses to such allegations.  The ECA charged Ms. Porter with violations of the AICPA Code of Professional Conduct as follows:

Rule 203 – Accounting Principles

  1. The guaranteed investment contract was inappropriately reported as a level 1 investment in the fair value measurements disclosure in the financial statements. Additionally, participant loans were improperly included in the fair value measurements disclosure. (FASB ASC 820-10-35, AICPA Audit & Accounting Guide – Employee Benefit Plans (“AAG-EBP” par. 3.42)

  2. The financial statements failed to make all required disclosures related to the fully benefit responsive guaranteed interest contract. (FASB ASC 962-325-50, AAG-EBP par. 3.50p)

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

As the partner responsible for her firm’s peer review compliance, Ms. Porter failed to ensure it complied with AICPA requirements and Government Auditing Standards to undergo a peer review.


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

  1. To waive her rights to further investigation of this matter in accordance with the Joint Ethics Enforcement Program (JEEP) Manual of Procedures.

  2. To waive her rights to a hearing under AICPA bylaws section 7.4.

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

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

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

  6. To complete an 11 hour continuing professional education course (Upcoming Peer Review: Is Your Firm Ready?) within three months of the effective date of this agreement and provide evidence of such completion (e.g., attendance sheets, course completion certificates, etc.).

  7. To provide a copy to the ECA of her firm’s peer review report for the year ended November 30, 2014 within 30 days of its acceptance by the peer review administering entity.  Additionally, if applicable, Ms. Porter agrees to comply in a timely manner with any remedial actions imposed by the peer review administering entity and agrees to provide evidence of the firm’s compliance to the ECA within 30 days of its completion. 

  8. 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 her peer review oversight agency.

  9. That the ECA shall provide a copy of this settlement agreement to the AICPA’s Peer Review Division staff, her peer review administering entities and her firm’s peer reviewer.

  10. That the ECA shall publish her name, the name of her current firm, the charges, and the terms of this settlement agreement.

  11. That the ECA shall monitor her compliance with the terms of this settlement agreement and initiate an investigation where the ECA finds there has been noncompliance.