Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Leali’s AICPA membership was suspended for two years, effective February 9, 2017, the date of the PCAOB’s Order. This action is based on the disciplinary action taken by the Public Company Accounting Oversight Board (PCAOB). Whereby, through an “Offer of Settlement”, and without admitting or denying the findings, the PCAOB censured Mr. Leali; directed that he pay a civil money penalty in the amount of $10,000; and limited his activities in connection with any “audit”, as that term is defined in Section 110(1) of the Sarbanes-Oxley Act of 2002, as amended (the “Act”), for a one-year period from the date of the PCAOB’s Order, by prohibiting him from serving in certain capacities in any audit as described in Section IV.E. herein. Details regarding the PCAOB’s disciplinary action can be found on the PCAOB’s website.