Investigation Results/Statistics
2009
In carrying out its mission "to promote dependable, accessible financial information" the Board is responsible for investigating complaints against CPAs, CPA-Inactive certificateholders, and CPA firms. Complaints can originate from clients, other CPAs, federal or state regulators, or identified through agency oversight and review programs. Complaints result from allegations of technical errors, or ethical or legal violations. The Board has closed 73 cases during 2009. Complaints or inquiries originated from the following sources:
| Source | Percent | |
| Agency oversight programs/Board initiated | 41 | 54% |
| Clients | 9 | 12% |
| Employer/Employee | 4 | 6% |
| Other CPA's | 1 | 1% |
| Media | 1 | 1% |
| Miscellaneous | 6 | 9% |
| Anonymous | 1 | 1% |
| Federal, state, local or foreign jurisdiction | 4 | 6% |
| Self-reported | 6 | 9% |
| Non-governmental professionally related standard-setting entity |
The 73 cases closed during 2009 resulted from the following allegations:
| Use of title or holding out in public practice by a nonCPA or non WA CPA | 4 | 6% |
| Issuance or offering to issue audit, review, or compilation report by unauthorized individual | 1 | 2% |
| Records retention | 1 | 2% |
| Noncompliance with technical standards including Quality Assurance Review | 19 | 25% |
| Noncompliance with code of conduct including conflict of interest | 4 | 6% |
| Failure to respond to Board oversight/inquiries | 1 | 1% |
| Failure to meet/substantiate CPE | 7 | 8% |
| Use of title or holding out in public practice with a lapsed license/certificate or no CPA firm license | 10 | 13% |
| Good character determination for initial licensure | 2 | 3% |
| Sanction/denial of practice privilege by a federal, state, local or foreign jurisdiction | 4 | 6% |
| Sanction by non-governmental professionally related standard-setting entity | ||
| Felony/misdemeanor conviction/disbarment | 1 | 1% |
| Embezzlement, fraud, dishonesty, or negligence | 2 | 3% |
| Fiduciary malfeasance or breach of fiduciary duties/disbarment | 4 | 6% |
| Failure to complete engagement | ||
| Failure to pay individual federal income taxes | ||
| Incompetence | 2 | 3% |
| Misleading advertising | ||
| Misrepresentations/fees | 1 | 1% |
| Reinstatement of suspended license request | 4 | 5% |
| Tax Errors | 4 | 5% |
| Court Declared Incapacitation | ||
| Unauthorized transfer of client information | ||
| Class Action Fairness Act Notice | 2 | 3% |
| Total: | 73 | 100% |
The Board resolved the 73 cases during 2009 as follows:
| Closed via Board Order | 36 | 49% |
| Agreement to Resolve | 1 | 1% |
| Administrative Sanctions Imposed | 3 | 4% |
| Close-May reopen | 1 | 1% |
| Reinstatement of Suspended License | 2 | 3% |
| Lack of evidence of violation | 22 | 30% |
| Closed by Mediated Settlement | 5 | 7% |
| No public harm | ||
| Letter of reprimand | 1 | 1% |
| Reinstatement Application Withdrawn | 1 | 1% |
| Dismissed - Individual in compliance | 1 | 1% |
See Also:
2009 License and certificate suspensions (including stayed suspension) and revocations