As a result of an investigation of alleged violations of the codes of professional conduct of the AICPA and the Pennsylvania Institute of CPAs, Mr. Seibert, with the firm of Kenneth R. Seibert, Certified Public Accountant entered into a settlement agreement under the Joint Ethics Enforcement Program, effective November 13, 2019.
Information came to the attention of the ethics charging authority (ECA — AICPA Professional Ethics Executive Committee and Pennsylvania Institute of CPAs Professional Ethics Committee) alleging a potential disciplinary matter with respect to Mr. Seibert’s performance of professional services on the audit of the financial statements of an employee benefit plan as of and for the year ended December 31, 2015.
The ECA reviewed the findings of the Department of Labor’s Employee Benefits Security Administration and Mr. Seibert’s responses to the ECA’s inquiries and other relevant documents Mr. Seibert submitted to support his responses, including financial statements, relevant emails and other correspondence. Based on this information, there appears to be prima facie evidence of violations of the rules of the AICPA and Pennsylvania Institute of CPAs codes of professional conduct as follows:
1.300.001 General Standards .01a Professional Competence Rule
The auditor undertook an engagement he could not complete in accordance with professional standards.
1.310.001 Compliance with Standards Rule
The auditor’s report is not in compliance with the Clarity Standards. (AU-C 700)
1.320.001 Accounting Principles Rule
The financial statements omitted substantially all disclosures required by generally accepted accounting principles. (FASB ASC 962)
1.400.050 Governmental Bodies, Commissions, or Other Regulatory Agencies
- The auditor issued an audit report without being properly licensed to practice in the state of Pennsylvania.
- The statement of net assets available for benefits was not comparative. (29 CFR 2520-103.1)
- The supplemental schedule of assets (held at end of year) is not in the format prescribed by ERISA. (29 CFR 2520-103.10)
In consideration of the ECA forgoing further investigation of Mr. Seibert’s conduct as described above, and in consideration of the ECA forgoing any further proceedings in the matter, Mr. Seibert agreed as follows:
a. To waive his rights to further investigation of this matter in accordance with the Joint Ethics Enforcement Program (JEEP) Manual of Procedures.
b. To waive his rights to a hearing under AICPA bylaws section 7.4 and the Pennsylvania Institute of CPAs bylaws Article XIV, Section 2(b).
c. To neither admit nor deny the above specified charges.
d. To his expulsion from membership in the AICPA and the Pennsylvania Institute of CPAs. His expulsion from the AICPA includes the loss of his AICPA credentials and certificates.
e. That the ECA shall provide a copy of this settlement agreement to the AICPA’s Peer Review Division staff, his firm’s peer review administering entity, and his firm’s peer reviewer.
f. That the ECA shall publish his name, the name of his firm, the charges, and the terms of this settlement agreement.