As a result of an investigation of alleged violations of the Code of Professional Conduct of the AICPA, Mr. Klein with the firm of Klein, Mandelblatt & Co., entered into a settlement agreement under the Joint Ethics Enforcement Program effective December 14, 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. Klein’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. Klein’s responses to such allegations. The ECA charged Mr. Klein with violations of the AICPA Code of Professional Conduct as follows:
Rule 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. Klein failed to ensure it complied with state board requirements and those of the AICPA to undergo a peer review.
In consideration of the ECA forgoing further investigation of Mr. Klein’s conduct as described above and in consideration of the ECA forgoing any further proceedings in the matter, Mr. Klein agreed as follows:
a. To waive his right to a hearing under AICPA bylaws section 7.4.
b. To neither admit nor deny the above specified charge.
c. To his expulsion from membership in the AICPA upon the effective date of this agreement.
d. That the ECA shall publish his name, the name of his firm, the charges, and the terms of this settlement agreement.