As a result of an investigation of alleged violations of the Code of Professional Conduct of the AICPA, Ms. Smith, with the firm of Nancy C. Smith, C.P.A., P.A. entered into a settlement agreement under the Joint Ethics Enforcement Program, effective December 8, 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 Ms. Smith’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. Smith’s responses to such findings. The ECA charged Ms. Smith with a violation of the AICPA Code of Professional Conduct as follows:
Rule 501 – Acts Discreditable
As the partner responsible for her firm’s peer review compliance, Ms. Smith failed to ensure it complied with the requirements of the AICPA to undergo a peer review.
In consideration of the ECA forgoing further investigation of Ms. Smith’s conduct as described above and in consideration of the ECA forgoing any further proceedings in the matter, Ms. Smith agreed as follows:
a. To waive her right to a hearing under AICPA bylaws section 7.4.
b. To neither admit nor deny the above specified charges.
c. To her suspension from membership in the AICPA for a period of two years from the effective date of this agreement.
d. That the ECA shall publish her name, the name of her firm, the charges, and the terms of this settlement agreement.
e. 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.