Washington Administrative Code Title 4 - Accountancy, Board of
Washington Administrative Code (WAC) Title 4 is dedicated to the Board of Accountancy.
This title outlines the comprehensive rules and regulations governing the practice of public accounting and the certification of Certified Public Accountants (CPAs) in Washington State. The Washington State Board of Accountancy is a consumer protection agency funded by fees from CPAs, firms, and exam applicants. Its primary purpose is to ensure the competency, ethical conduct, and public accountability of CPAs, CPA firms, and non-licensee CPA firm owners, thereby safeguarding the public interest in financial reporting and related services.
Here's a breakdown of the typical content you would find within WAC Title 4:
Chapter 4-25 - Organization and Public Records: This chapter likely details the structure and operations of the Board of Accountancy itself, including its membership, meeting procedures, and how the public can access its records in accordance with public disclosure laws.
Chapter 4-26 - Procedures for Initial Certification and Licensure: This crucial chapter sets forth the requirements for individuals seeking to become CPAs in Washington. This includes:
Education Requirements: Typically, a bachelor's degree or higher with 150 semester hours of college education, including specific credits in accounting and business administration courses (e.g., 24 semester hours in accounting with at least 15 at the upper-level/graduate level, and 24 semester hours in business subjects).
CPA Examination: Rules for eligibility to sit for the Uniform CPA Examination (which includes core sections like AUD, FAR, REG, and one discipline section like BAR, ISC, or TCP), passing scores (75 or higher on each section), and the 36-month rolling window to pass all four sections.
Experience Requirements: A specified amount of qualifying work experience (e.g., at least 2,000 hours over a minimum of 12 months), which can be in public accounting, industry, government, or even academia, and must be verified by a licensed CPA.
Ethics Exam: Requirement to complete a course covering the AICPA Code of Professional Conduct and achieve a score of 90% or better on its examination.
Application Procedures: Detailed steps for applying for initial licensure, including submission of transcripts, experience affidavits, and ethics course completion certificates.
Chapter 4-28 - General Standards for the Practice of Public Accountancy: This chapter outlines the professional and ethical standards that all licensed CPAs and CPA firms must adhere to in their practice. This would cover areas such as:
Independence, Integrity, and Objectivity: Core ethical principles guiding CPAs in their professional judgments, especially in attest services.
Competence and Due Care: Requirements for CPAs to maintain the necessary knowledge and skills and to perform services with professional diligence.
Confidentiality: Rules regarding the protection of client information.
Contingent Fees: Regulations on when contingent fees are permissible or prohibited.
Advertising: Standards for professional advertising by CPAs and firms.
Chapter 4-30 - General Provisions (often containing CPA firm organization, ownership, and other titles): This chapter covers various general rules, which may include:
CPA Firm Organization and Ownership: Rules regarding the allowable legal forms of organization for CPA firms (e.g., sole proprietorships, partnerships, professional service corporations, LLCs) and ownership requirements, including provisions for non-licensee CPA firm owners.
Use of Titles: Regulations on what titles can be used by licensees (e.g., "Certified Public Accountant," "CPA," "CPA-inactive," "CPA retired") and how other nationally recognized professional designations (e.g., "Enrolled Agent," "Certified Financial Planner") can be used without implying CPA licensure.
Peer Review (Quality Review): Requirements for CPA firms performing attest services to undergo periodic peer reviews to ensure compliance with professional standards.
Chapter 4-32 - Continuing Professional Education (CPE): This chapter specifies the mandatory continuing education requirements for CPAs to maintain their licenses. This typically includes:
Required Hours: For example, 120 hours every three-year renewal period, with a minimum of 20 hours annually.
Subject Matter: Limitations on non-technical subjects and specific requirements for ethics education.
Acceptable Programs: Criteria for what counts as acceptable CPE.
Reporting and Auditing: Procedures for reporting CPE and the Board's right to audit compliance.
Chapter 4-34 - Professional Conduct and Disciplinary Action: This chapter outlines the Board's authority and procedures for investigating complaints against CPAs and firms and imposing disciplinary actions for violations of the Public Accountancy Act or the Board's rules. This can range from fines and reprimands to suspension or revocation of licenses.
In essence, WAC Title 4 is the definitive legal guide for anyone practicing or aspiring to practice as a CPA in Washington, ensuring a high standard of competence and ethics in the accounting profession.
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