Hothem, Terry L. of Phoenix, AZ

In lieu of an investigation of alleged violations of the Code of Professional conduct of the AICPA, this ethics case has been resolved by a settlement agreement under the Joint Ethics Enforcement Program, in which Mr. Hothem's AICPA membership was suspended for one year, effective February 14, 2014, based on a Consent Order that he entered into with the Arizona State Board of Accountancy (the "Board").  Specifically, effective February 14, 2014 the Board placed Mr. Hothem's CPA license on probation for one year, and limited the scope of his practice by not performing or providing attest services for one year, both of which ended on February 15, 2015.  The provisions were in connection with allegations, of which Mr. Hothem disputed, relating to the audit of a "Company's" consolidated financial statements for the year ended October 31, 2005.  The Board alleged that the consolidated financial statements were not in conformity with generally accepted accounting principles and that such consolidated financial statements contained material departures from such accounting principles, which had a material effect on the consolidated financial statements taken as a whole.  The Board directed that Mr. Hothem reimburse the Board for its costs relating to its investigation and proceedings in this matter, pay an administrative penalty, and complete twenty-four hours of continuing professional education.