Professional Ethics and

Professional Ethics and Regulations in Washington State for CPA’s

Scott Woelfle, CPAAssistant Audit ManagerWashington State Auditor’s Office

December 2010Olympia, WA4 CPE

This course includes: Brief discussion of “ethics” Role of the State Board of Accountancy General information on Chapter 18.04 RCW Detailed information on Chapter 4-25 WAC Differences between Washington state law and

AICPA Code of Conduct

EthicsWho has “ethics” rules?

Your employerState law (for employees, in general)State law (for elected officials)Standards for performing certain work

(e.g. auditing)Professional organizationsYour favorite social group(s)

Ethics

Are they the same in private industry as in government?

Are they the same in all professions?

Role of Professional OrganizationTo support or advocate on behalf of member CPAs or CPA firmsMembership is optionalEnsures members standards of ethics or quality

AICPA Code of ConductThe Code of Professional Conduct of the American Institute of Certified Public Accountants consists of two sections—(1) the Principles and (2) the Rules. The Principles provide the framework for the Rules, which govern the performance of professional services by members. The Council of the American Institute of Certified Public Accountants is authorized to designate bodies to promulgate technical standards under the Rules, and the bylaws require adherence to those Rules and standards. Other guidance includes Interpretations of Rules of Conduct and formal Ethics Rulings provided by the AICPA professional ethics division’s executive committee. Publishing of Interpretations or Rulings in the Journal of Accountancy constitutes notice to members.

Role of State Board of AccountancyState Agency established by LegislatureTo protect the public and the integrity of financial informationAuthority over all licenseesEnsure all licensees maintain high ethical and technical standardsEnforce state laws and regulations – prosecute violators

Role of State Board of Accountancy – (cont’d)

Can revoke license to practiceFine up to $30,000Cost recoveryRequire CPERequire restitution to injured partiesRestrict practice

Good character vs. a “history of dishonesty or felonious acts”

Role of State Board of Accountancy – (cont’d)

Does not regulate corporations, CEOs, accountants, etc.Board is currently 9 volunteer membersStaff of 9

Board Stats12,460 licensees (8/27/10) – 13,085 (11/28/10)1,554 CPA – Inactive certificateholders1,966 CPA firmsAbout 250 CPE audits each yearAbout 90-150 complaints each year

(154 closed in 2007, 92 in 2008, 90 in 2009)

Public Accountancy Act, Board Rules and Board Policy

Public Accountancy Act (RCW 18.04)Established by LegislatureCompliance is required

Board Rules (WAC 4-25) (See Appendix A)Follows rule making processCompliance is required

Board Policies and FAQsEstablished by BoardProvided as guidance on how Board interprets rules

Public Accountancy ActWhat is the focus of the Public Accountancy Act?

Regulates both:The exercise of Due Professional Care (compliance with professional standards)The use of the title “CPA” or “Certified Public Accountant”

Major Changes in 2007

Changes in CPA Exam fees each year

Board meeting schedule

Expansion of Quality Assurance Review program authority

Major Changes in 2008 The Governor signed mobility legislation passed by the State Legislature in March“Mobility” means CPA’s licensed in other states can practice in WA without obtaining a CPA license hereCPAs serving clients under these provisions are subject to the WBOA

2008-2009 – Comprehensive review of all rulesChanges effective December 19, 2010

CPA Mobility - What changed in the Act?

RCW 18.04.025 – DefinitionsRCW 18.04.195 – License requirementsRCW 18.04.205 – Registration of officesRCW 18.04.345 – Prohibited practicesRCW 18.04.350 – Practices not prohibitedSee Appendix A1 for a copy of the Act

CPA Mobility Legislation2010

TX

WA

OR

CA

NV

ID

MT ND

SDWY

UTCO

AZ NM

HI

OK

KS

NE

MN

IA

MO

AR

LA

MS AL *GA

FL

WI

IL

MI

IN

KY

TNSC

NC

VA

OH

NY

ME

CT RI

*MA

AK

WVNJDE

DC

MD

*PA

CPA Mobility Enacted 47

CPA Mobility Enacted Only for Other Mobility States – GA, PA, MA

In Process

* Awaiting Governor Signature - 1

NH

CPA Mobility Legislation Pending - 2

VT

Will there be other states joining the mobility effort?

Major progress has been made:2008 2009 2010Passed mobility legislation 31 45 47Pending mobility legislation 3 1 2Planned / in process 13 3 2Total 47 49 51

What are the licensing requirements for out-of-state individuals?

A CPA licensed in another state may practice in WA without notice if:

Their principal place of business is out-of-stateHolds a valid license to practice from a state that requires:

150 hours of college or university educationMay be an exemption – see RCW 18.04.350

Pass the CPA examOne year of experience.

What are the licensing requirements for out-of-state individuals?

Holds a valid CPA license from any state with substantially equivalent requirementsConsents to jurisdiction of the BoardConsents to comply with the Act and Board rulesRenders attest services only through a licensed firmDoes not render any service the individual is not licensed to perform in home state.

What are the licensing requirements for out-of-state firms?

A CPA firm license is required if the out-of-state CPA firm has a client with a home office in Washington state and provides that client with any of the following services:

Audits Examinations of prospective financial information PCAOB engagements

What are the licensing requirements for out-of-state firms?

A CPA firm is not required to obtain a license from the Board when:

Providing other services while using the terms “CPA” or “CPA firm” through a CPA that is qualified for practice privilegesThey can lawfully practice public accounting in the state where the individual with practice privileges conducts business

Major Changes Coming in 2010 per the Board – Effective December 19, 2010

Comprehensive reorganization of all Board rules - All information related to a topic will be in one sectionPolicy information will incorporated into the rulesAddress online servicesInclude several new or replaced rulesEliminate the AICPA ethics course as a requirementChanges coming related to:

Retention of client records (2011)The Board’s investigation process – 4th amendment search

Definitions

WAC 4-25-400s

WAC 4-25-400 What is the authority for and the purpose of the board's rules?

The Public Accountancy Act (Act), chapter 18.04 RCW, establishes the board as the licensing and disciplinary agency for certified public accountants (CPA), CPA-Inactive certificateholders, CPA firms, and non-licensee CPA firm owners. The Act authorizes the board to promulgate rules to carry out the purpose of the Act, which include:

WAC 4-25-400 What is the authority for and the purpose of the board's rules? (Cont’d)

Protecting the public interest; Enhancing the reliability of financial information Establishing qualifications to be a licensee of this state;Assuring that CPAs practicing in Washington have equivalent qualifications to those practicing in other states;

WAC 4-25-400 What is the authority for and the purpose of the board's rules? (Cont’d)

Regulating ownership of CPA firms; Publishing consumer alerts and public protection information regarding persons and firms who violate the Act or board rules; and Providing general consumer protection information to the public. The process for rulemaking is found in RCW 34.05, the Administrative Procedure Act. New rules and amendments are filed with the Office of the Code Reviser and published in the Washington State Register.

The board's rules, contained in chapter 4-25 WAC, encompass these subjects:

Definitions; Administration of the board; Ethics and prohibited practices; Entry and renewal requirements; Continuing competency; and Regulation and enforcement.

WAC 4-25-410 Definitions(20) "Holding out" means any representation to the public by the use of restricted titles as set forth in RCW 18.04.345 by a person that the person holds a license or practice privileges under the Act and that the person offers to perform any professional services to the public. "Holding out" shall not affect or limit a person or firm not required to hold a license under the Act from engaging in practices identified in RCW 18.04.350. (28) “Licensee” means an individual or firm holding a valid license to practice public accounting issued under the act, including out-of-state individuals qualifying for practice privileges … and out-of-state firms permitted to offer or render certain professional services…

Example of a Board Action Seattle. April 29, 2010

Violation: Non CPA firm prepared an accountant’s review report and presented the accountant’s review report on letterhead that contained the individual’s name along with the title “Certified Public Accountant” Sanctions: The non CPA agreed to refrain from restricted practices; pay a $5,000 fine; and reimburse the Board $500 for investigation and legal costs.

Seattle. April 29, 2010.Violation: Non CPA firm appeared to offer auditing services proscribed by professional standards through its web site.Sanctions: While denying any wrongdoing, non CPA firm agreed to continue to refrain from restricted practices; pay $500 fine; and reimburse the Board $250 for investigation and legal costs.

Example of a Board Action Kennewick. March 4, 2010 Violation: Revoked CPA prepared and signed an

accountants’ review report to financial statements without benefit of an individual or firm CPA license.

Sanctions: Individual agrees to refrain from signing, affixing, or associating his name or his firm’s name to any report designated as an “audit,” “review,” or “compilation” until licensed under Public Accountancy Act to do so, pay $5,000 fine, and reimburse Board $250 for investigative and legal costs.

WAC 4-25-410 Definitions(22) "Inactive" means the individual held a valid certificate on June 30, 2001, has not met the current requirements of licensure and has been granted CPA-Inactive certificateholder status through the renewal process established by the board. A CPA-Inactive may not practice public accounting nor may the individual use the CPA-Inactive title if they offer accounting, tax, tax consulting, management advisory, or similar services to the public. (The title might be used for expert witness services.)

Other Definitions – Policy 2006-1 - Appendix E

The Board also defined the following terms for staff while undertaking a study of the issues involved:

In writingWithin the State or In the StatePractice Privilege Education Exemption

Administration

WAC 4-25-500s

ADMINISTRATION OF THE BOARD - WAC 4-25-510 What is the board's meeting schedule?

Regular board meetings begin at 9:00 a.m. on the last Friday of the month in the months of January, April and July or as otherwise determined by the Board. The board holds an annual meeting beginning at 9:00 a.m. on the last Friday of October or as otherwise determined by the Board.

ADMINISTRATION OF THE BOARD WAC 4-25-510

The board's meetings are open public meetings conducted pursuant to chapter 42.30 RCW. WAC 4-25-521 provides information on how to contact the board's office for meeting times and locations or additional information regarding the board's activities.

WAC 4-25-520 What public records does the board maintain?

The board maintains the following public records: A database of licensees and certificateholders; A database of CPA examination candidates; A database of registered resident nonlicensee firm owners;

(continued on next slide)

WAC 4-25-520 What public records does the board maintain? (Cont’d)

Board orders; Board meeting minutes; Board policies; Board rule-making files; and Documents dealing with the regulatory, supervisory, and enforcement responsibilities of the board.

WAC 4-25-521 How can I contact the Board?

The board's administrative office, executive director and staff are located in Olympia. You may utilize the following numbers or addresses to contact the board: 711 South Capitol Way, Suite 400, Olympia, WAP.O. Box 9131, Olympia, Washington 98507-9131 (mailing address); 360/753-2586 (telephone); 360/664-9190 (fax); 800/833-6388 (TT service); 800/833-6385 (Telebraille services); [email protected] (e-mail address); and www.cpaboard.wa.gov (website address).

State Board Websitewww.cpaboard.wa.govCan access law (RCW 18.04), rules (WAC 4-25), and Board policiesFrequently Asked Questions (search)FormsLicensee searchAlertsSubscribe to WBOA-News – the Board’s official newsletter

http://www.cpaboard.wa.gov/

Subscribe to WBOA-NewsClick on the “Subscribe to WBOA-News link on the Board’s webpage

This is an electronic mailing list for their newsletter (http://listserv.wa.gov/archives/wboa-news.html)

Click on “Join or leave the list” Enter your e-mail address and name to join

You will be notified by e-mail of Board meetings and official actions.

http://listserv.wa.gov/archives/wboa-news.html

WAC 4-25-540What rules govern the proceedings before the board?

Board Policy 2004-1, Sanction and Penalty Guidelines, describes how the Board handles complaints, investigations, and case resolution negotiations.An excerpt of Policy 2004-1 is attached as Appendix B

WAC 4-25-540What rules govern the proceedings before the board?

For certain types of decisions, the board has adopted an appeal process authorized by RCW 34.05.482 through 34.05.494 which is called a brief adjudicative proceeding. Decisions to which this appeal process will be applied are:

1. Staff denials of initial individual license applications, renewals, or applications for reinstatement;

2. Staff denials of CPA-Inactive certificate renewals or applications for reinstatement;

3. Staff denials of practice privilege reinstatements;4. Staff denials of initial resident nonlicensee firm owner registration

applications, renewals, or applications for reinstatement;5. Staff denials of initial firm license applications, renewals, and

amendments;6. Staff denials of exam applications; and7. A proposed suspension as a result of a determination by a lending

agency of nonpayment or default on a federally or state-guaranteed student loan or service conditional scholarship.

WAC 4-25-540What rules govern the proceedings before the board? (cont)

To appeal a decision you must submit your request for a brief adjudicative proceeding, in writing, to the board within thirty days after the decision by board staff is posted in the U.S. mail. The presiding officer for the brief adjudicative proceedings is the executive director, or designee. After consulting with a board member, the executive director, or designee, renders a decision either upholding or overturning the decision by board staff. This decision, called an order, is mailed to you.If you are dissatisfied with the order in the brief adjudicative proceeding, you may appeal to the board's vice-chair, or designee. This appeal process is called an administrative review. Your appeal must be received by the board, orally or in writing, within twenty-one days after the brief adjudicative proceedings order is posted in the U.S. mail. The vice-chair, or designee, considers your appeal and either upholds or overturns the brief adjudicative proceeding order. The vice-chair's, or designee's, decision, also called an order, is mailed to you.

WAC 4-30-030 (New!)What are the requirements for communicating with the board and staff?

Guidance summarized and incorporated in the rules in one place

Includes “preferred form of contact” with the Board

See Appendix F for a copy of the new rule

WAC 4-25-550Do I need to notify the board if I change my address?

Yes.(!) All individuals licensed in this state, CPA-Inactive certificateholders, CPA firms licensed in this state, … and applicants, must notify the board in writing within thirty days of any change of address. Firms licensed in this state must notify the board of any opening, closing or relocation of the main office or a branch office in this state.

WAC 4-25-551Must I respond to inquiries from the board?

Yes!!!All licensees, including out-of-state individuals qualifying for practice privileges in this state … and out-of-state firms …, CPA-Inactive certificateholders, … must respond, in writing, to board communications requesting a response.Your response must be made within twenty days of the date the board's communication is posted in the U.S. mail. Communications from the board to you are directed to the last address you furnished the board.

Example of a Board Action Seattle. March 18, 2010.Violation: Failure to complete and document Continuing Professional Education (CPE) required for renewal and failure to respond to Board inquiry. Sanctions: Suspension of CPA certificate and eligibility to renew or reinstate individual or firm license for three years; Before the Board will consider a reinstatement application, the individual must serve one year of the suspension; make complete application for reinstatement; pay a $1,000 fine; reimburse Board $250 for investigative and legal costs; and complete the AICPA course in professional ethics. The individual may not use the CPA or CPA-Inactive titles while under suspension.

ETHICS AND PROHIBITIED PRACTICES

WAC 4-25-600s

WAC 4-25-610 Which rules govern the conduct of CPAs?

The rules that govern the conduct of CPAs are as follows:

Professional judgment (Us using this at all times)The public interest (Serving the public, honoring their trust, committed to professionalism)Integrity (With the highest sense of Honesty)Objectivity (Avoiding Conflicts of interest, Being independent in fact and appearance)Due care (Compliance, competence, quality, best efforts)

WAC 4-25-620What are the requirements concerning integrity and objectivity?

When offering or performing services, licensees, CPA-Inactive certificateholders, nonlicensee firm owners, and employees of such persons must:

Remain honest and objective; Not misrepresent facts; Not subordinate their judgment to others; and Remain free of conflicts of interest unless such conflicts are specifically permitted by board rule or professional standards listed in WAC 4-25-631.

WAC 4-25-622 When is independence required?

When performing professional services for which a report expressing assurance is prescribed by professional standards, licensees … must evaluate and maintain their independence:

so that opinions, reports, conclusions, and judgments will be impartial and viewed as impartial by parties expected to rely on any report expressing assurance … .

Such persons are required: To comply with all applicable independence rules and regulations issued by regulatory agencies (including PCAOB, SEC, GAO, OMB and many others)To decline engagements when such persons have a relationship that could lead a reasonable and foreseeable user to conclude that such persons are not independent.

This requirement does not apply to compilation engagements that disclose a lack of independence in the report.

WAC 4-25-626What restrictions govern commissions, referral, and contingent fees?

Licensees and/or their employees,…must not: For a commission, refer or recommend a product or service to a client or that one be supplied by a client, orReceive a commission,

When such persons perform compilation or other services for which a report expressing assurance is prescribed by professional standards. (Difference from AICPA Rule 503.)

This applies to:Periods in which you are engaged to perform the servicesPeriods covered by financial statements when a report expressing assurance was issued

WAC 4-25-626What restrictions govern commissions, referral, and contingent fees?

Licensees and/or their employees,…must not:

Perform for a contingent fee any professional services for, or receive such a fee from a client for whom such persons perform compilations, or other professional services for which a report expressing assurance is prescribed by professional standards… ; or Prepare an original or amended tax return for a contingent fee.

WAC 4-25-626What restrictions govern commissions, referral, and contingent fees? (Cont’d)

Any person subject to board rules who is not prohibited from performing services, or accept commissions, referral or contingent fees must:

Disclose the arrangement in writing and in advance of client acceptance;Disclose the method of calculating the fee or amount of fee; Specify the licensee's role as the client's advisor; and Obtain the client's consent to the fee arrangement in writing.

AICPA Rule 503 does not require this level of disclosure or client consent.

WAC 4-25-630What are the requirements concerning competence?

Licensees, CPA-Inactive certificateholders, … and employees of such persons must not undertake to perform any service unless such persons can reasonably expect to complete the service with professional competence.

Does this apply to you?

WAC 4-25-631 Compliance is required with which rules, regulations and professional standards?

Licensees, …, CPA-Inactive certificateholders, … must comply with rules, regulations, and professional standards promulgated by the appropriate bodies for each service undertaken. Authoritative bodies include, but are not limited to,

the Securities and Exchange Commission (SEC); the Public Company Accounting Oversight Board (PCAOB); the Financial Accounting Standards Board (FASB); the Governmental Accounting Standards Board (GASB); the Cost Accounting Standards Board (CASB); the Federal Accounting Standards Advisory Board (FASAB); the U.S. Governmental Accountability Office (GAO); the Federal Office of Management and Budget (OMB); the Internal Revenue Service (IRS); the American Institute of Certified Public Accountants (AICPA), and federal, state, and local audit, regulatory and tax agencies.

Example of a Board Action

Bellevue. April 28, 2010.Violation: Firm failed to conduct an audit, prepare financial statements or submit tax returns for a client in a timely manner causing the client to work with the IRS for abatement of a late filing penalty and engage another CPA to do audit work.Sanctions: CPA agrees to pay $1,000 fine, reimburse Board $250 for legal and investigative costs; complete Continuing Professional Education in Board approved Washington State ethics and regulation; submit a plan of practice management to the Board, and engage a technical consultant to evaluate the firm’s practice management structure.


Bainbridge Island. March 11, 2010Violation: Tax return errors.Sanctions: CPA agrees to pay $750 fine, reimburse Board $250 investigative and legal costs, pay restitution to client, complete a Board approved continuing professional education (CPE) course in ethics and regulation applicable to the practice of public accounting in Washington State, and complete a CPE course related to the preparation of income tax returns.

WAC 4-25-640 What are the requirements concerning records and clients confidential information?

Property of the licensee, CPA-Inactive certificateholder…: In the absence of an express agreement between a licensee … and the client to the contrary, all statements, records, schedules, working papers, and memoranda made by a licensee in the course of professional service to clients, except reports submitted by a licensee, are the property of the licensee. Sale or transfer of client records: No statement, record, paper or electronic, may be sold or transferred without the consent of the client to anyone other than a surviving partners or shareholders.

WAC 4-25-640 What are the requirements concerning records and clients confidential information? (Cont’d)

Confidential client communication or information: Licensees, CPA-Inactive certificateholder, … or employees of such persons must not without the consent of the client …

disclose any confidential communication orinformation pertaining to the client

obtained in the course of performing professional services.


Does this apply to you?

WAC 4-25-640 What are the requirements concerning records and clients confidential information? (Cont’d)Except for:

complying with a lawfully issued subpoena or summons; disclosures in the course of a quality review of a licensee's attest, compilation or other reporting services governed by professional standards; responding to any inquiry made by the board or any investigative or disciplinary body established by local, state or federal law or recognized by WBOA; review of client information in conjunction with a prospective purchase, sale, or merger of all or part of the professional practice of public accounting.


Client records: Licensees, CPA-Inactive certificateholders, … and employees of such persons must furnish to their client …upon request and reasonable notice:

A copy of records, schedules, and electric documents …, to the extent that such records and schedules would ordinarily constitute part of the client’s records and are not otherwise available to the client; and

WAC 4-25-640 What are the requirements concerning records and clients confidential information? (Cont’d)Any accounting or other records belonging

to or obtained from, or on behalf of, the client, that the licensee, …, or employees of such persons

removed from the client’s premises orreceived for the client’s account, including electronic documents;

but such persons may make and retain copies of such documents when they form the basis for the professional services offered/rendered.


Licensees, CPA-Inactive certificateholders, … and/or employees of such persons must not refuse to return client records, including electronic documents, pending client payment of outstanding fees.This is a key difference between state law and the AICPA Code of Professional Ethics.

Example of a Board action

February 4, 2008. Violation: Transfer of client information without the consent of the CPA's employers. Sanction: Board reprimand; CPA must pay $1,000 fine and reimburse Board $250 investigative and legal costs; complete four hours continuing education in ethics and regulation applicable to the practice of public accounting in Washington State.


Audit and review record retention requirements:

For seven years after a licensee concludes an audit or review such persons must retain the records and documents, including electronic records unless hard copies of such exist: …

WAC 4-25-650What acts are considered discreditable?

Licensees, CPA-Inactive certificateholders, … and employees of such persons must not:

Commit, or allow others to commit in their name, any act that reflects adversely on their fitness to represent themselves as a CPA, CPA-Inactive certificateholder, CPA firm, or a firm owner; Seek to obtain clients by the use of coercion, intimidation or harassing conduct; or Permit others to carry out on their behalf, either with or without compensation, acts which violate the rules of conduct.

WAC 4-25-660What are the limitations on advertising and other forms of solicitation? Licensees, CPA-Inactive certificateholders, … and employees of

such persons must not make false, fraudulent, misleading, deceptive or unfair statements or claims regarding their services. Examples:

Contain a misrepresentation of fact; Fail to make full disclosure of relevant facts; Imply your professional services are of an exceptional quality, which is not supported by verifiable facts; Create false expectations of favorable results; Imply educational or professional attainments, specialty designations, or licensing recognition not supported in fact; or Represent that professional services will be performed for a stated fee when this is not the case, or do not disclose variables that may reasonably be expected to affect the fees that will be charged.

WAC 4-25-661What are the limitations regarding individual and firm names?

A firm name that does not consist of the name(s) of one or more present or former owners must be approved in advance by the board as not being deceptive or misleading. Misleading or deceptive firm names are prohibited.

WAC 4-25-661What are the limitations regarding individual and firm names? (Cont’d)

The following are examples of misleading firm names. The board does not intend this listing to be all inclusive. The firm name: (1) Implies it is a legal entity when it is not such an entity (as by the use of the designations "P.C.," "P.S.," "Inc. P.S.," or "L.L.C."); (2) Implies the existence of a partnership when one does not exist; (3) Includes the name of a person who is neither a present nor a past owner of the firm; or (4) Implies educational or professional attainments, specialty designations, or licensing recognition not supported in fact.

A licensee may not operate under an alias, a firm name, title, or "DBA" that differs from the firm name that is registered with the board. A CPA or a CPA-Inactive certificateholder may not use the title in association with a name that is not registered with the board.

WAC 4-25-670 What enforcement actions must be reported to the board?

A licensee, CPA-Inactive certificateholder, or nonlicensee firm owner must notify the board, in the manner prescribed by the board, within thirty days of the issuance of:

A sanction, order, suspension, revocation, or modification of a license, certificate, permit or practice rights by the SEC, PCAOB, IRS, or another state board of accountancy for any cause other than failure to pay a professional license fee by the due date or failure to meet the continuing professional education requirements of another state board of accountancy; orCharges filed by the SEC, IRS, PCAOB, another state board of accountancy, or a federal or state taxing, insurance or securities regulatory body that the licensee, CPA-Inactive certificateholder, … committed a prohibited act that would be a violation of board ethical or technical standards.


August 14, 2008. Violation: Failure to return client records, holding out as a CPA and CPA firm without valid practice licenses, failure to report revocation of escrow agent license by the Department of Financial Institutions, failure to pay business and occupation taxes to the Washington State Department of Revenue, and failure to pay taxes to the IRS that resulted in a tax lien. Sanctions: CPA voluntarily surrendered his CPA certificate and eligibility to renew or reinstate his practice licenses for ten years. As a condition for reinstatement, individual must requalify for the license, pay $2,500 fine and reimburse the Board $1,000 for costs.

ENTRY AND RENEWAL REQUIREMENTS

WAC 4-25-700s

WAC 4-25-735 How does a CPA-Inactive certificateholder apply for licensure?

CPA-Inactive certificateholders are individuals who held a valid certificate on June 30, 2001, but did not hold a valid Washington state license to practice public accounting on that date. Individuals who did not hold a valid certificate on June 30, 2001 and licensees are not eligible for CPA-Inactive certificateholder status.

WAC 4-25-735 How does a CPA-Inactive certificateholder apply for licensure? (Cont’d)

If you are a CPA-Inactive certificateholder you: May not “practice public accounting”; Must meet the CPE and supporting documentation requirements; Must comply with the Act and board rules; Must meet the renewal requirements of WAC 4-25-790; and Must use the title CPA-Inactive and print or display the word “Inactive” immediately following the initials “CPA” or certified public accountant, in exactly the same font and size, whenever printed in paper form or transmitted in electronic form


If you are a CPA-Inactive certificateholder, to qualify for licensure must:

Meet the experience requirements of WAC 4-25-730 or have had an approved experience affidavit on file with the board on or before June 30, 2001; and Meet the CPE requirements of WAC 4-25-830.Submit to the board a certification

That you meet the minimum requirements aboveThat you have not held out in public practice


You may not use the title “CPA” or “Certified Public Accountant” until the date of your approval is posted on the board’s licensee database (which is shown on the web). The application is not complete and cannot be processed until all fees and information / documentation are received.

WAC 4-25-747 Must an out-of-state individual holding a license from another state apply and obtain a Washington State license?

No. Out-of-state individuals holding valid licenses to practice public accounting issued by a substantially equivalent state, may hold out and practice within Washington state and/or provide public accounting services in person, by mail, telephone, or electronic means to clients residing in Washington state without notice or payment of a fee.


As a condition of this privilege, the nonresident individual is deemed to have consented to:

(1) The personal and subject matter jurisdiction and disciplinary authority of this state's board;

(2) (2) Comply with the Public Accountancy Act of this state, chapter 18.04 RCW, and this board's rules, chapter 4-25 WAC;

(3) The appointment of the state board which issued the certificate or license as their agent upon whom process may be served in any action or proceeding by this state's board against the certificateholder or licensee;

http://apps.leg.wa.gov/RCW/default.aspx?cite=18.04

http://apps.leg.wa.gov/WAC/default.aspx?cite=4-25

WAC 4-25-747 Must an out-of-state individual holding a license from another state apply and obtain a Washington State license?As a condition of this privilege, the nonresident individual is

deemed to have consented to:(4) Render the following services for a client with a home office in

this state only through a firm that has obtained a license from this state :

a) Any audit or other engagement to be performed in accordance with the statements on auditing standards;

b) Any examination of prospective financial information to be performed in accordance with the statements on standards for attestation engagements; and

c) Any engagement to be performed in accordance with the public company accounting oversight board auditing standards.


As a condition of this privilege, the nonresident individual is deemed to have consented to:

(5) Not render any professional services in this state unless the out-of-state individual is licensed to render such services in the state of licensure upon which the privilege is contingent;

(6) Cease offering or performing professional services in this state, individually and/or on behalf of a firm, if the license from the state of the out-of-state individual's principal place of business is no longer valid; and

(7) Cease offering or performing specific professional services in this state, individually and/or on behalf of a firm, if the license from the state of the out-of-state individual's principal place of business is restricted from offering or performing such specific professional services.

WAC 4-25-753 When must a firm holding a license from another state apply and obtain a Washington State license?

A CPA firm license is required if the out-of-state CPA has a client with a home office in Washington state and provides that client with any of the following services:

Audits Examinations of prospective financial information PCAOB engagements

WAC 4-25-791I am a CPA-Inactive certificateholder. Prior to July 1, 2001, I held a license. How do I apply to return to my previous status?CPA-Inactive certificateholders who held a

license at any time prior to July 1, 2001, may apply to return to their previous status as a licensee. Use the form provided by the board and satisfy CPE requirements in WAC 4-25-830(5).

WAC 4-25-792 How do I reinstate a lapsed individual license, CPA-Inactive certificate, or registration as a resident nonlicensee firm owner?If your individual license or CPA-Inactive certificate

has lapsed, you may not use the title CPA or CPA-Inactive until your individual license or CPA-Inactive certificate is reinstated by the board. Individuals who held a valid license on June 30, 2001, and individuals obtaining a license after June 30, 2001, are not eligible to reinstate as CPA-Inactive certificateholders.

WAC 4-25-793 If I retire my license or CPA-Inactive certificate, how do I apply to return to my previous status as a licensee or a CPA-Inactive certificateholder?

To apply to return to your previously held status as either a licensee or a certificateholder you must use the form(s) provided by the board and satisfy CPE requirements in WAC 4-25-830(4). If you previously held a license, you are not eligible to apply for CPA-Inactive certificateholder status.

WAC 4-25-795 How do I reinstate a revoked or suspended license or CPA-Inactive certificate?

You may not use the title CPA or CPA-Inactive until your license or CPA-Inactive certificate is reinstated by the board. You may request that the board modify the suspension or revocation after three years have elapsed from the effective date of the board's order revoking or suspending your license or CPA-Inactive certificate. You must use the form provided by the board and satisfy CPE requirements in WAC 4-25-830(6).

WAC 4-25-795How do I reinstate a revoked or suspended license or CPA-Inactive certificate? (Cont’d)

If the board decides to consider your application, a hearing may be held. If the board decides that it will not consider your application for reinstatement, then this constitutes final agency action and there is no further administrative review available to you. As a condition of reinstatement, the board may impose such terms and conditions as it deems suitable. The board will not consider a request for reinstatement while you are under sentence for any criminal offense.

CONTINUING COMPETENCY

WAC 4-25-800s

WAC 4-25-820What are the requirements for participating in quality assurance review (QAR)?

Purpose. The Washington state board of accountancy is charged with protection of the public interest and ensuring the dependability of information used for guidance in financial transactions or for accounting for or assessing the status or performance of commercial and noncommercial enterprises, whether public, private or governmental. The purpose of the QAR program is to monitor licensees' compliance with audit, compilation and review, and other attestation standards.

WAC 4-25-820How does the QAR process work?

QAR Committee – appointed by BoardSee Board Policy 2000-3 (Appendix C)

Conducts reviews of workpapers and reports every three yearsRecognizes Peer Reviews by other organizations and will waive QAR Committee review

WAC 4-25-820What does the committee review focus on?

These reports and financial information include:Compilation report on historical financial statements;Review report on historical financial statements;Audit report on historical financial statements;Agreed-upon procedures;Forecasts;Internal controls;Performance audits; andProjections

WAC 4-25-820What does the committee review focus on?

Presentation of the financial statements covered by the licensee reports and/or other information covered by those reports in conformity with applicable professional standards for presentation and disclosure;Compliance by licensees with applicable reporting standards; and Compliance by licensees with the rules of the board and other regulations relating to the practice of public accounting.

WAC 4-25-820What happens if a report is substandard?

The board may take one or more of the following actions:

Send the licensee a letter of comment detailing the perceived deficiencies and require improved quality control procedures;Require any licensee to successfully complete specific courses or types of continuing education;Require that the licensee responsible for a substandard report submit all or specified categories of its reports to a preissuance review. The cost of the review will be at the firm’s expense;

WAC 4-25-820 What happens if a report is substandard? (Cont’d)

Require the licensee to submit to a peer review conducted in accordance with standards acceptable to the board. The cost of the peer review will be at the licensee’s expense;Require the licensee responsible for substandard work to submit to on-site field review or other investigative procedures of work product and practices by board representatives in order to assess the degree or pervasiveness of substandard work. Initiate an investigation pursuant to RCW 18.04.295, 18.04.305, and/or 18.04.320.The board may solicit and review licensee reports and/or other information covered by the reports from clients and other users of such information.

Example of a Board ActionFebruary 16, 2005 Violation: Quality Assurance Review referral--technical deficiencies. Sanctions: Board reprimand; Preissue review of next six compilation reports on financial statements, next three review reports on financial statements, and next three audit reports on financial statements; CPA must reimburse Board $653 for costs of a field review; reimburse Board $300 for administrative and legal costs; pay $300 fine; complete 40 hours of Continuing Professional Education in financial statement disclosures, financial statement preparation, compilation and review standards, accounting update, and professional ethics that is directly applicable to the practice of public accountancy in the state of Washington; and complete the AICPA's CPE course "Professional Ethics for CPAs.

Example of a Board Action February 11, 2010 Violation: Quality Assurance Review referral - technical

deficiencies and failure to comply with prior Board order. Sanctions: CPA and CPA firm agree to pay a $1,500 fine,

reimburse the Board $250 for investigative and legal costs, and refrain from issuing audit, review, or compilation reports to financial statements with the exception of management-use only compilations meeting the standards under SSARS 8. The CPA and CPA firm must obtain written permission from the Board before the Board will lift the restriction.

WAC 4-25-830What are the CPE requirements?

(1) The following CPE is required during the three calendar year period prior to renewal:

An individual licensed to practice in this state must complete a total of 120 CPE hours, including 4 CPE credit hours in an approved Washington ethics and regulations course meeting specific Board requirements.

The total 120 CPE hours requirement is limited to not more than 24 CPE credit hours in nontechnical subject areas. All qualifying CPE hours must be taken after the date your initial CPA license was issued.

WAC 4-25-830What are the CPE requirements?

(1) The following CPE is required during the three calendar year period prior to renewal:

A CPA-Inactive certificateholder or a resident nonlicensee firm owner must complete 4 CPE credit hours in ethics meeting specific Board requirements; and Individuals holding practice privileges are exempt from the CPE requirements of this section.Limited extensions can be granted for reasonable cause.

See Board Policy 2000-1 and Q&A (Appendix D)

WAC 4-25-830What are the CPE requirements? (Cont)

(2) CPE requirements for renewal of a license that was issued less than three years before the end of a CPA-Inactive certificate renewal cycle (Conversion of certificate to license in reporting period)

Issued in 1st year of reporting period (80 / 16 non-tech / 4 ethics)Issued in 2nd year of reporting period (40 / 8 non-tech / 4 ethics)Issued in 3rd year of reporting period (4 hours of ethics)

(3) Ethics and regulations applicable to practice in Washington stateBoard-approved ethics program

(4) CPE requirements to renew a retired license or CPA-Inactive CertificateRetired License (120 / 24 non-tech – 36 mo, 4 ethics – last 6 mo)Retired CPA-Inactive Certificate (4 ethics – last 6 months)

(5) CPE requirements for a CPA-Inactive certificateholder to either qualify to apply for a license or return to their previously held status as a licensee

Same as (1) above (120 / 24 non-tech – 36 mo, 4 ethics)


(6) Reinstatement of a lapsed, suspended, or revoked license, certificate, or registration as resident nonlicensee firm owner

License (120 / 24 non-tech – 36 mo, 4 ethics – last 6 mo)CPA-Inactive Certificate or Nonlicensee firm owner (4 hours of ethics with last 6 months)

(7) License by Reciprocity – same hours as (6) above for License, except no ethics requirement

Hours must be earned after you were licensed


(8) CPE extension request - You must complete your CPE by the end of the reporting period unless you can demonstrate that the failure to complete CPE was due to reasonable cause, such as:

Financial hardshipCritical illnessActive military deployment

The request must be made by the end of the CPE reporting period (December 31)

Example of a Board action

March 31, 2008. Violation: Failure to complete Continuing Professional Education (CPE) required for renewal. Sanctions: Stayed suspension of CPA certificate and license to practice public accounting for four months; CPA agreed to (1) pay a $1,000 fine; (2) reimburse Board $200 for costs; and (3) document completion of 40 hours of CPE annually.

Example of a Board actionApril 21, 2009-CPA-Inactive Snohomish. Violation: Misrepresentation in filing an application for renewal of CPA-Inactive certificate; failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA-Inactive certificate.Sanctions: Voluntary surrender of CPA certificate on or before May 21, 2009; Prior to reinstatement of certificate, he must make a complete application, pay $500 fine, reimburse Board $150 investigative and legal costs; and any other requirements imposed by the Board.

WAC 4-25-831 What are the program standards for CPE?

Qualifying program: A program qualifies as acceptable CPE for purposes of RCW 18.04.215(5) if it is a formal program of learning which contributes to the CPA’s professional knowledge and competence. A formal program means:

The program is at least fifty minutes in length;Attendance is recorded;Participants sign in to confirm attendance and sign out, if the program is greater than four credit hours; andAttendees are provided a certificate of completion.

WAC 4-25-831 What are the program standards for CPE? (Cont’d)

Undergraduate and graduate courses: A graduate or undergraduate course qualifies for CPE credit if it meets the standards for quality and subject matter. For both undergraduate and graduate courses one quarter credit equals 10 CPE and one semester credit equals 15 CPE.Committee meetings: Generally, CPE credit is not allowed for attending committee meetings. A meeting qualifies for CPE credit only if it meets the standards for quality and subject matter.


Volunteer service for the Board of Accountancy: You may receive up to thirty-two hours of technical CPE credit each calendar year for actual time spent on board, board committee, or board approved peer review committee activities.Subject areas: Programs dealing with the following general subject areas are acceptable so long as they meet the standards in quality: (a) Technical subjects include: (next slide)


Technical subjects include: Auditing standards or procedures; Compilation and review of financial

statements; Financial statement preparation and

disclosures; Attestation standards and procedures; Projection and forecast standards or

procedures; Accounting and auditing; Management advisory services; Personal financial planning; Taxation; Management information services; Budgeting and cost analysis; Asset management;

Professional ethics (other than those programs used to satisfy the requirements of WAC 4-25-830(3));

Specialized areas of industry; Human resource management; Economics; Business law; Mathematics, statistics, and quantitative

applications in business; Business management and organization; General computer skills, computer

software training, information technology planning and management; and

Negotiation or dispute resolution courses;


(b) Nontechnical subjects include:Communication skills; Interpersonal management skills; Leadership and personal development skills; Client and public relations; Practice development; Motivational and behavioral courses; and Speed reading and memory building;


Subjects other than those listed above may be acceptable provided you can demonstrate they contribute to your professional competence. You are solely responsible for demonstrating that a particular program is acceptable.


Group programs: Must meet the standards for quality and subject matter:

Professional education and development programs of national, state, and local accounting organizations;Technical sessions at meetings of national, state, and local accounting organizations and their chapters;Formal in-firm education programs; Programs of other organizations (accounting, industrial, professional, etc.); Dinner, luncheon, and breakfast meetings which are structured as formal educational programs;Firm meetings for staff and/or management groups structured as formal education programs.


CPE credit: Credit is allowable only for those programs taken after the issuance of the CPA license.CPE credit is given in half-hour increments only after the first full CPE credit hour has been earned. A minimum of fifty minutes constitutes one CPE credit hour.


Self-study programs: Credit for self-study programs is allowed for reporting purposes on the date you completed the program as evidenced by the program sponsor.

Instructor, discussion leader, or speaker: If you serve as an instructor, discussion leader or speaker at a program which meets the standards in for quality and subject matter, the first time you present the program you may claim CPE credit for both preparation and presentation time. One hour of credit is allowed for each fifty minutes of instruction andYou may claim credit for actual preparation time up to two times the presentation hours. (No credit is allowed for subsequent presentations.) A maximum of seventy-two CPE credit hours are allowed for preparation and presentation during each CPE reporting period.


Published articles, books: You may claim CPE credit for published articles and books, provided they contribute to your professional competence.

Credit for preparation of such publications may be claimed on a self-declaration basis for up to thirty hours in a CPE reporting period.


Carry-forward: CPE credit hours you complete during one period cannot be carried forward to the next period.Carry-back: As specified in WAC 4-25-830(8), CPE credit hours you complete during one period can be carried back to the previous reporting period only after the board has approved your extension request or has required the carry-back as part of sanctions for failure to complete required CPE. Credential examination: You may not claim CPE credit for preparing for or taking a credential examination unless you complete a formal review course and receive a certificate of completion meeting the requirements of WAC 4-25-833. CPE credit may not be claimed for CPA examination review courses.

WAC 4-25-832How do I report my CPE to the board?

To apply for renewal of your license or certificate, you must satisfy the board's CPE and supporting documentation requirements. The reporting of compliance with CPE requirements is concurrent with filing your renewal application.

When you complete your renewal form, you are required to sign a statement certifying under the penalty of perjury that you complied with the board's CPE requirements.

The board audits, on a test basis, compliance with CPE and supporting documentation requirements as certified on the renewal form.

WAC 4-25-833 What documentation must I retain to support my CPE credits?

For each program for which you claim CPE credit you must retain documentation to support all of the following:

Program sponsor;Title of program or description of content; Date(s) attended;Number of CPE credit hour(s); Attendee name; and Acceptable evidence of completion.

WAC 4-25-833What documentation must I retain to support my CPE credits? (Cont’d)Acceptable evidence supporting these requirements includes:

For group programs, a certificate that is supplied by the program sponsor; For self-study programs, a certificate supplied by the program sponsor after satisfactory completion of a workbook or examination; For a university or college course, a record of the grade you received; (e.g. transcript)For instruction credit, evidence obtained from the program sponsor of your having been the instructor or discussion leader at the program; or For published articles or books, evidence of publication.

WAC 4-25-833 What documentation must I retain to support my CPE credits? (Cont’d)

You are responsible for documenting your entitlement to the CPE credit you claim on your renewal form. You must retain the supporting documentation for CPE credit claimed for three years after the end of the CPE reporting period in which the credit was claimed.

Example of a Board ActionJ B, CPA, Bellevue. April 25, 2005. Violation: Acts and omissions in filing an application for renewal of CPA license constitute fraud or deceit; failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA license. Sanctions: Board reprimand; CPA must pay $2,000 fine; reimburse Board $500 for costs; complete four hours ethics applicable to the practice of public accounting in Washington State; complete the AICPA's course: "Professional Ethics for CPAs;" complete 21 hours of qualifying CPE to fulfill 2001/2003 CPE requirements.

REGULATION AND ENFORCEMENT

WAC 4-25-900s

WAC 4-25-910What are the bases for the board to impose discipline?

RCW 18.04.055, 18.04.295, 18.04.305 and 18.04.350 authorize the board to

Revoke, suspend, refuse to issue, renew or reinstate an individual or firm license, CPA-Inactive certificate, the right to exercise practice privileges in this state, or registration as a resident nonlicensee firm owner; Impose a fine not to exceed thirty thousand dollars; Recover investigative and legal costs; Impose full restitution to injured parties;

Continued on next slide…

WAC 4-25-910What are the bases for the board to impose discipline? (Cont.)

Impose remedial sanctions; Impose conditions precedent to renew; or Prohibit a resident nonlicensee from holding an ownership interest in a firm licensed in this state for the specific acts listed below.

Continued on next slide…

WAC 4-25-910 What are the bases for the board to impose discipline? (Cont’d)

The following are specific examples of prohibited acts that constitute grounds for discipline:

Fraud or deceit in applying for the CPA examination, obtaining a license, registering as a resident nonlicensee firm owner, or in any filings with the board. Fraud or deceit in renewing or requesting reinstatement of a license, CPA-Inactive certificate, registration as a resident nonlicensee firm owner.

(Continued on next slide)


The following are specific examples of prohibited acts that constitute grounds for discipline: (continued)

Cheating on the CPA exam. Making a false or misleading statement in support of another person's application or request to:

Take the national uniform CPA examination,Obtain a license or registration required by the act or board,Reinstate or modify the terms of a revoked or suspended license, certification or registration…Reinstate revoked or suspended practice privileges of an individual or firm licensed in another state (NEW)




Dishonesty, fraud, or negligence while representing oneself as a licensee, CPA-Inactive certificateholder, CPA firm, or a resident nonlicensee firm owner including but not limited to:

Practicing public accounting in Washington state prior to obtaining a license required by RCW 18.04.215 or .195; Offering or rendering public accounting services in this state by an out-of-state individual or firm not qualified for practice privileges … (NEW)



Dishonesty, fraud, or negligence while representing oneself as a licensee, CPA-Inactive certificateholder, CPA firm, or a resident nonlicensee firm owner including but not limited to:

Making misleading, deceptive, or untrue representations; Engaging in acts of fiscal dishonesty; Purposefully, knowingly, or negligently failing to file a report or record, or filing a false report or record, required by local, state, or federal law;



Unlawfully selling unregistered securities; Unlawfully acting as an unregistered securities salesperson or broker-dealer; Discharging a trustee's duties in a negligent manner or breaching one's fiduciary duties; or Withdrawing or liquidating, as fees earned, funds received by a licensee, …, from a client as a deposit or retainer when the client contests the amount of fees earned, until such time as the dispute is resolved.


The following shall be prima facie evidence that someone covered by the act has engaged in dishonesty, fraud, or negligence …:

An order of a court of competent jurisdiction An order of a federal, state, local or foreign jurisdiction regulatory body, or PCAOB,



Prima facie evidence of dishonesty, fraud or negligence -

Cancellation, revocation, suspension, or refusal to renew the right to practice as a licensee, certificateholder or a nonlicensee firm owner by any other state for any cause other than failure to pay a fee or to meet the requirements of continuing education in the other state; or



Prima facie evidence of dishonesty, fraud or negligence -

Suspension or revocation of the right to practice before any state agency, federal agency or the PCAOB.Any state or federal criminal conviction or commission of any act constituting a crime under the laws of this state, or of another state, or of the United States.



Any state or federal criminal conviction or commission of any act constituting a crime under the laws of this state, or of another state, or of the United States.


A conflict of interest such as: Self dealing as a trustee, including, but not limited to:

Investing trust funds in entities controlled by or related to the trustee; Borrowing from trust funds, with or without disclosure; andEmploying persons related to the trustee or entities in which the trust has a beneficial interest to provide services to the trust.

Example of a Board ActionCPA, Edmonds. January 16, 2009.Violation: As co-personal representative of an estate, borrowed money from estate funds for personal use without authorization; failed to provide a timely accounting of an estate to the successor co-personal representative of the estate; failed to comply with a court order; and continued association of the CPA title with his name after the suspension of his CPA certificate and individual and firm licenses in April 2001.Sanctions: Revocation of CPA certificate and eligibility to renew or reinstate practice licenses for 10 years and until he requalifies for CPA licenses. Requalification includes education, examination, experience, and ethics requirements in place at the time of application.

Example of a Board ActionVancouver. July 12, 2010.Violation: Guilty plea and sentencing in Clark County Superior Court of one count of first-degree theft of $66,400 from his minor daughter’s trust fund.Sanctions: Revocation of CPA certificate, eligibility to renew or reinstate an individual license to practice public accounting, and CPA firm license. Before the Board will consider an application for the reissuance of a CPA certificate or license, Christensen must (1) serve five years of the revocation; (2) comply with the then existing education, examination, experience, and ethical eligibility requirements; (3) pay a $5,000 fine; and (4) reimburse Board $750 for investigative and legal costs.CPA, Edmonds. January 16, 2009.


Conflict of interest (continued)Borrowing funds from a client unless the client is in the business of making loans of the type obtained and the loan terms are not more favorable than loans extended to other persons of similar credit worthiness.



(2008) A violation of the Public Accountancy Act or failure to comply with a board rule contained in chapter 4-25 WAC.

An individual exercising practice privilege when not qualifiedSubmission of an application by an out-of-state firm when not qualifiedFailure of an individual exercising practice privileges to cease offering or performing services:

when their original license is no longer validwhen their license has been restricted from performing those services

Failure of a firm to cease offering services through one or more individuals when their licenses are no longer valid or are restricted from performing specific servicesFailure of a firm to comply with ownership requirementsFailure of a firm to comply with the board’s quality assurance requirements, when applicable


Violation of one or more of the rules of professional conduct included in chapter 4-25 WAC Concealing another's violation of the Public Accountancy Act or board rules.


Failure to cooperate with the board by failing to:

Furnish any papers or documents requested or ordered to; Furnish in writing a full and complete explanation related to a complaint; Respond to an inquiry of the board; Respond to subpoenas issued by the board, whether or not the recipient of the subpoena is the accused in the proceeding.


Failure to comply with an order of the board. Adjudication of a licensee,…, as mentally incompetent is prima facie evidence that the person lacks the professional competence required by the rules of professional conduct.


Failure to notify the board, in the manner prescribed by the board, of any of the following:

A sanction, order, suspension, revocation of rights by the SEC, PCAOB, IRS, or another state board of accountancy; or Charges filed by the SEC, IRS, PCAOB, another state board of accountancy, or a federal or state taxing, insurance or securities regulatory body that the individual committed a prohibited act that would be a violation of board ethical or technical standards.


Failure to notify the board, in the manner prescribed by the board, of any of the following:

Sanctions or orders entered against such persons by a nongovernmental professionally related standard-setting body for violation of ethical or technical standards in the practice of public accounting by a licensee, CPA-Inactive certificateholder, or nonlicensee firm owner.

WAC 4-25-930 Does the board authorize the use of any other titles or designations?

Yes. The board authorizes the use of the following titles and designations, provided the individual is so authorized to use the title or designation by the Accreditation Council for Accountancy and Taxation located in Alexandria, Virginia, or its successor:

“Accredited Business Accountant” or “ABA”; “Accredited Tax Preparer” or “ATP”; and“Accredited Tax Advisor” or “ATA.”

WAC 4-25-930 Does the board authorize the use of any other titles or designations? The board also authorizes the use of the title

"Certified Financial Planner" or "CFP" provided the individual is so authorized to use the title or designation by the Certified Financial Planner Board of Standards in Denver, Colorado, or its successor.This authorization relates to title use only, is not limited to individuals holding a license or certificate under the act, and does not authorize these individuals to use the title "certified public accountant" or "CPA."

Frequently Asked Questions

Appendix D - Continuing Professional Education

Board Policy 2000-1

Any questions?

WA State Board of Accountancy(360) 753-2586

Scott Woelfle,Assistant Audit Manager

Team Audit [email protected]

(509) 527-4175

mailto:[email protected]

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