Butler, Velma of Chicago, IL

As a result of an investigation of alleged violations of the codes of professional conduct of the AICPA and the Illinois CPA Society, Ms. Butler, with the firm of Velma Butler and Company, Ltd. entered into a settlement agreement under the Joint Ethics Enforcement Program, effective August 26, 2025.

Information came to the attention of the Ethics Charging Authority (ECA – AICPA Professional Ethics Executive Committee and the Illinois CPA Society Professional Ethics Committee) alleging a potential disciplinary matter with respect to the peer review of the firm Velma Butler and Company, Ltd.

The ECA has reviewed the allegations in the complaint, Ms. Butler’s responses to the ECA’s inquiries, and other relevant documents Ms. Butler submitted to support her response. Based on this information, the ECA charged Ms. Butler with violations of the rules of the AICPA and the Illinois CPA Society codes of professional conduct as follows:

Violations

Acts Discreditable Rule (1.400.001)

As the sole proprietor of her firm, Ms. Butler committed an acts discreditable by allowing a falsified peer review report to be submitted to her audit clients.

Governmental Bodies, Commissions, or Other Regulatory Agencies (1.400.050)

Ms. Butler continued to perform audit engagements after being terminated from the peer review program and failed to have her firm subject to a peer review as required by her state board of accountancy and the AICPA bylaws.

Governmental Audits (1.400.055)

Ms. Butler’s firm has not undergone a peer review in the last three years as required by Government Auditing Standards.

Agreement

1. In consideration of the ECA forgoing further investigation of Ms. Butler’s conduct as described above, and in consideration of the ECA forgoing any further proceedings in the matter, Ms. Butler agreed as follows:

2. To waive her rights to a hearing under AICPA bylaws section 7.4 and Illinois CPA Society bylaws section 7.3.

3. To neither admit nor deny the above specified charges.

4. To her expulsion from membership in the AICPA and Illinois CPA Society from the effective date of this agreement. Her expulsion from the AICPA includes the loss of her AICPA credentials and certificates.

5. That the ECA shall provide a copy of this settlement agreement to the AICPA’s Peer Review Division staff, her firm’s peer review administering entity, and her firm’s peer reviewer.

6. That the ECA shall publish her name, the name of her firm, the charges, and the terms of this settlement agreement.