Source: http://lawfilesext.leg.wa.gov/law/wsr/2011/07/11-07-070.htm
Timestamp: 2020-04-07 07:39:13
Document Index: 748176442

Matched Legal Cases: ['§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4']

WSR 11-07-070
[ Filed March 22, 2011, 9:57 a.m. , effective April 22, 2011 ]
Purpose: 1. To amend six rules containing a reference to chapter 4-25 WAC that was decodified and recodified as chapter 4-30 WAC. The board changed the references to the accurate reference, TITLE 4 WAC.
2. The board amended WAC 4-30-048 to refer to the complete listing of seventeen standards.
Additionally, the goal with all of its rule proposals is to:
Citation of Existing Rules Affected by this Order: Amending WAC 4-30-020, 4-30-048, 4-30-090, 4-30-110, 4-30-112, 4-30-134, and 4-30-142.
Statutory Authority for Adoption: For WAC 4-30-020 is RCW 18.04.055; for WAC 4-30-048 is RCW 18.04.055(2); for WAC 4-30-090 is RCW 18.04.350 (2), (3), (4), (5); for WAC 4-30-110 is RCW 18.04.055(8), 18.04.195, 18.04.205; for WAC 4-30-112 is RCW 18.04.055(8), 18.04.195; for WAC 4-30-134 is RCW 18.04.055(7), 18.04.215(5); and for WAC 4-30-142 is RCW 18.04.055(16), 18.04.195 (11)(d), 18.04.295, 18.04.305, 18.04.350(2).
Adopted under notice filed as WSR 11-03-091 on January 19, 2011.
OTS-3860.2
AMENDATORY SECTION(Amending WSR 10-24-009, filed 11/18/10, effective 12/19/10)
WAC 4-30-020 What ((is)) are 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 certificate holders, CPA firms, and owners of CPA firms. The act authorizes the board to promulgate rules to carry out the purpose of the act, which include:
The board's rules, contained in ((chapter 4-25 [4-30])) Title 4 WAC, encompass these subjects:
[Statutory Authority: RCW 18.04.055. 10-24-009, recodified as § 4-30-020, filed 11/18/10, effective 12/19/10; 08-18-016, § 4-25-400, filed 8/25/08, effective 9/25/08; 05-01-137, § 4-25-400, filed 12/16/04, effective 1/31/05; 01-22-036, § 4-25-400, filed 10/30/01, effective 12/1/01; 00-11-067, § 4-25-400, filed 5/15/00, effective 6/30/00; 93-12-063, § 4-25-400, filed 5/27/93, effective 7/1/93.]
OTS-3877.1
WAC 4-30-048 Compliance is required with which rules, regulations and professional standards? Licensees, including out-of-state individuals exercising practice privileges in this state under RCW 18.04.350(2) and out-of-state firms permitted to offer or render certain professional services in this state under the conditions prescribed in RCW 18.04.195 (1)(b), CPA-Inactive certificate holders, CPA firms, nonlicensee firm owners, and employees of such persons must comply with rules, regulations, and professional standards promulgated by the appropriate bodies for each service undertaken. However, if the requirements found in the professional standards listed in this section differ from the requirements found in specific board rules, board rules prevail.
If the professional services are governed by standards not included in subsections (1) through (((16))) (17) of this section, individuals and firms including persons exercising practice privileges under RCW 18.04.350(2) who offer or render professional services in this state or for clients located in this state and the firms rendering professional services in this state or for clients located in this state through such qualifying individuals must:
(a) Maintain documentation of the justification for the departure from the standards listed in subsections (1) through (((16))) (17) of this section;
[Statutory Authority: RCW 18.04.055(2). 10-24-009, amended and recodified as § 4-30-048, filed 11/18/10, effective 12/19/10; 08-18-016, § 4-25-631, filed 8/25/08, effective 9/25/08; 05-01-137, § 4-25-631, filed 12/16/04, effective 1/31/05; 02-04-064, § 4-25-631, filed 1/31/02, effective 3/15/02. Statutory Authority: RCW 18.04.055 (2) and (6). 00-11-071, § 4-25-631, filed 5/15/00, effective 6/30/00. Statutory Authority: RCW 18.04.055(6). 98-12-050, § 4-25-631, filed 5/29/98, effective 6/29/98. Statutory Authority: RCW 18.40.055 [18.04.055]. 93-22-046, § 4-25-631, filed 10/28/93, effective 11/28/93.]
OTS-3861.1
WAC 4-30-090 Must an out-of-state individual holding a license from another state apply and obtain a Washington state license to hold out and practice in Washington state? 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.
(2) Comply with the Public Accountancy Act of this state, chapter 18.04 RCW, and this board's rules((, chapter 4-25 [4-30])) contained in Title 4 WAC;
(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 (RCW 18.04.195, 18.04.205 and WAC 4-30-110):
[Statutory Authority: RCW 18.04.350 (2), (3), (4), (5). 10-24-009, amended and recodified as § 4-30-090, filed 11/18/10, effective 12/19/10; 08-18-016, § 4-25-747, filed 8/25/08, effective 9/25/08.]
OTS-3862.1
WAC 4-30-110 What are the allowable legal forms of organization and ownership requirements for a CPA firm? (1) Permitted forms of organization. A CPA firm may be organized as:
(2) What happens when a CPA firm alters its legal form? A mere change in the legal form of an existing firm constitutes a new firm for licensing purposes. Accordingly, the new entity must first obtain a CPA firm license from the board and then dissolve the former firm unless the owners desire to maintain more than one licensed firm. Affiliated entities using a restricted title or offering or performing restricted services are subject to board rules.
(ii) Be subject to discipline by the board for violations of chapter 18.04 RCW ((or 4-25 [4-30])) and this board's rules contained in Title 4 WAC;
(iii) Principally employed by the firm or actively engaged in its business.
(e) A principal owner and any individual having authority over issuing reports on financial statements must be a licensee under the act or holder of a valid license to practice public accountancy issued by another state and must be entitled to practice public accounting in this state.
(f) A nonresident CPA owner must be licensed to practice public accountancy in at least one state.
(g) A nonlicensee owner must:
(iv) Be an active individual participant in the licensed firm or affiliated entities as these terms are defined in WAC 4-30-010; and
(h) A resident nonlicensee firm owner must meet the requirements of WAC 4-30-116 and register with the board concurrent with submission of the firm license application, or submission of an amendment to the firm license status, to the board.
[Statutory Authority: RCW 18.04.055(8), 18.04.195, 18.04.205. 10-24-009, amended and recodified § 4-30-110, filed 11/18/10, effective 12/19/10; 08-18-016, § 4-25-750, filed 8/25/08, effective 9/25/08; 05-01-137, § 4-25-750, filed 12/16/04, effective 1/31/05; 03-24-033, § 4-25-750, filed 11/25/03, effective 12/31/03; 02-04-064, § 4-25-750, filed 1/31/02, effective 3/15/02; 00-11-074, § 4-25-750, filed 5/15/00, effective 6/30/00. Statutory Authority: RCW 18.04.055(8) and 18.04.205(3). 99-18-117, § 4-25-750, filed 9/1/99, effective 1/1/00. Statutory Authority: RCW 18.04.055(3), 18.04.205(3) and 18.04.195. 96-12-061, § 4-25-750, filed 5/31/96, effective 7/1/96. Statutory Authority: RCW 18.04.055. 93-22-089, § 4-25-750, filed 11/2/93, effective 12/3/93.]
OTS-3863.1
WAC 4-30-112 Must a firm holding a license from another state apply and obtain a Washington state license to hold out and practice in Washington state? (1) A firm license must be obtained from the board if any of the following criteria apply:
(a) The firm performs such services through individuals with practice privileges under RCW 18.04.350(2) and WAC 4-30-090 or reciprocal license under RCW 18.04.180 and 18.04.183 and board rules;
(b) Comply with the Public Accountancy Act of this state, chapter 18.04 RCW, and this board's rules((, chapter 4-25 [4-30])) contained in Title 4 WAC;
[Statutory Authority: RCW 18.04.055(8), 18.04.195. 10-24-009, amended and recodified as § 4-30-112, filed 11/18/10, effective 12/19/10; 08-18-016, § 4-25-753, filed 8/25/08, effective 9/25/08.]
OTS-3864.1
WAC 4-30-134 What are the CPE requirements for individuals? (1) The following CPE is required for individuals during the three calendar year period prior to renewal:
(a) Chapter 18.04 RCW and ((chapter 4-25 [4-30])) Title 4 WAC. The CPE must include general level information on the Public Accountancy Act, the board's rules, policies, and the rule-making process.
(b) WAC 4-30-026 How can I contact the board?
(c) WAC 4-30-032 Do I need to notify the board if I change my address?
(d) WAC 4-30-034 Must I respond to inquiries from the board?
(e) WAC 4-30-040 through 4-30-048 Ethics and prohibited practices. The CPE must include detailed information on each rule and all related board policies.
(f) WAC 4-30-103 Series -- Continuing competency. The CPE must include detailed information on each rule and all related board policies.
(g) WAC 4-30-142 What are the bases for the board to impose discipline?
(i) Variances or key differences between Washington state law (chapter 18.04 RCW ((and chapter 4-25 [4-30]))), this board's rules (Title 4 WAC) and the AICPA Code of Conduct.
(4) CPE requirements to renew a license or CPA-Inactive certificate out of retirement:
(a) In order to renew a license out of retirement, you must meet the CPE requirements of subsection (1)(a) of this section within the thirty-six month period immediately preceding the date the renewal application is submitted to the board; however, the four CPE hours in ethics meeting the requirements of subsection (3) of this section must be completed within the six-month period immediately preceding the date your renewal application is submitted to the board.
(b) In order to renew a CPA-Inactive certificate out of retirement, you must meet the CPE requirements of subsection (1)(b) of this section within the six-month period immediately preceding the date your renewal application is submitted to the board.
(5) CPE requirements for a CPA-Inactive certificate holder to either qualify to apply for a license or return to their previously held status as a licensee: If you hold a valid CPA-Inactive certificate and you wish to apply for a license or you want to return to your previously held status as a licensee, you must meet the CPE requirements of subsection (1)(a) of this section within the thirty-six month period immediately preceding the date your application is ((is)) submitted to the board.
(a) If you seek to reinstate a lapsed, suspended, or revoked license, you must satisfy the requirements of subsection (1)(a) of this section within the thirty-six month period immediately preceding the date the application for reinstatement is submitted to the board; however, the four CPE hours in ethics meeting the requirements of subsection (3) of this section must be completed within the six-month period immediately preceding the date your application for reinstatement is submitted to the board.
(b) If you seek to reinstate a lapsed, suspended, or revoked CPA-Inactive certificate, or registration as a resident nonlicensee firm owner, you must satisfy the requirements of subsection (1)(b) of this section within the six-month period immediately preceding the date your application for reinstatement is submitted to the board.
(7) Reciprocity: If you are applying for an initial Washington state CPA license under the reciprocity provisions of the act, you must satisfy the requirements in subsection (1)(a) of this section, after you were licensed as a CPA and within the thirty-six month period immediately preceding the date your application is submitted to the board. For purposes of initial licensure, you do not need to satisfy the ethics requirements of subsection (1)(a) of this section. Thereafter, in order to renew your Washington state license, you must comply with all the renewal requirements in subsection (1)(a) of this section.
[Statutory Authority: RCW 18.04.055(7), 18.04.215(5). 10-24-009, amended and recodified as § 4-30-134, filed 11/18/10, effective 12/19/10. Statutory Authority: RCW 18.04.055(7) and 18.04.215. 09-17-044, § 4-25-830, filed 8/11/09, effective 9/11/09. Statutory Authority: RCW 18.04.055(7), 18.04.215(5). 08-18-016, § 4-25-830, filed 8/25/08, effective 9/25/08; 05-01-137, § 4-25-830, filed 12/16/04, effective 1/31/05; 02-04-064, § 4-25-830, filed 1/31/02, effective 3/15/02. Statutory Authority: RCW 18.04.055(7), 18.04.104(8), 18.04.215(4). 00-11-077, § 4-25-830, filed 5/15/00, effective 6/30/00. Statutory Authority: RCW 18.04.055(7), 18.04.215(4) and 18.04.105(8). 99-23-045, § 4-25-830, filed 11/15/99, effective 1/1/00.]
OTS-3865.1
WAC 4-30-142 What 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; 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.
(6) The following shall be prima facie evidence that a licensee, as defined in WAC 4-30-010, CPA-Inactive certificate holder, a nonlicensee firm owner, or the employees of such persons has engaged in dishonesty, fraud, or negligence while representing oneself as a licensee, as defined in WAC 4-30-010, CPA-Inactive certificate holder, a nonlicensee firm owner, or an employee of such persons:
(a) An order of a court of competent jurisdiction finding that the person or persons committed an act of negligence, fraud, or dishonesty or other act reflecting adversely on the person's fitness to represent himself, herself, or itself as a licensee, as defined in WAC 4-30-010, CPA-Inactive certificate holder, or a nonlicensee firm owner;
(b) An order of a federal, state, local or foreign jurisdiction regulatory body, or a PCAOB, finding that the licensee, as defined in WAC 4-30-010, CPA-Inactive certificate holder, or nonlicensee firm owner, or employee of such persons committed an act of negligence, fraud, or dishonesty or other act reflecting adversely on the person's fitness to represent himself, herself, or itself as a licensee, as defined in WAC 4-30-010, a CPA-Inactive certificate holder, or a nonlicensee firm owner;
(b) Borrowing funds from a client unless the client is in the business of making loans of the type obtained by the licensee, as defined in WAC 4-30-010, CPA-Inactive certificate holder, or nonlicensee firm owner and the loan terms are not more favorable than loans extended to other persons of similar credit worthiness.
(10) A violation of the Public Accountancy Act or failure to comply with a board rule contained in ((chapter 4-25 [4-30])) Title 4 WAC, by a licensee, defined in WAC 4-30-010, CPA-Inactive certificate holder, or employees of such persons of this state or a licensee of another substantially equivalent state qualified for practice privileges, including but not limited to:
(11) Violation of one or more of the rules of professional conduct included in ((chapter 4-25 [4-30])) Title 4 WAC.
(15) Adjudication of a licensee, as defined by WAC 4-30-010, CPA-Inactive certificate holder, or a nonlicensee firm owner as mentally incompetent is prima facie evidence that the person lacks the professional competence required by the rules of professional conduct.
(16) Failure of a licensee, as defined by WAC 4-30-010, CPA-Inactive certificate holder, nonlicensee firm owner, or out-of-state person exercising practice privileges authorized by RCW 18.04.195 and 18.04.350 to timely notify the board, in the manner prescribed by the board, of any of the following:
[Statutory Authority: RCW 18.04.055(16), 18.04.195 (11)(d), 18.04.295, 18.04.305, 18.04.350(2). 10-24-009, amended and recodified as § 4-30-142, filed 11/18/10, effective 12/19/10; 08-18-016, § 4-25-910, filed 8/25/08, effective 9/25/08. Statutory Authority: RCW 18.04.055(16), 18.04.295, and 18.04.305. 05-01-137, § 4-25-910, filed 12/16/04, effective 1/31/05; 03-24-033, § 4-25-910, filed 11/25/03, effective 12/31/03. Statutory Authority: RCW 18.04.055(11), 18.04.295, and 18.04.305. 02-04-064, § 4-25-910, filed 1/31/02, effective 3/15/02; 00-11-078, § 4-25-910, filed 5/15/00, effective 6/30/00. Statutory Authority: RCW 18.04.055 and 18.04.295. 94-23-070, § 4-25-910, filed 11/15/94, effective 12/16/94.]