Investigation Results/Statistics
2010
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 182 cases during 2010. Complaints or inquiries originated from the following sources:
| Source | Percent | |
| Agency oversight programs/Board initiated | 92 | 50% |
| Clients | 44 | 24% |
| Employer/Employee | 1 | 1% |
| Other CPA's | 11 | 6% |
| Media | ||
| Miscellaneous | 7 | 4% |
| Anonymous | 1 | 1% |
| Federal, state, local or foreign jurisdiction | 8 | 4% |
| Self-reported | 18 | 10% |
| Non-governmental professionally related standard-setting entity |
The 182 cases closed during 2010 resulted from the following allegations:
| Use of title or holding out in public practice by a nonCPA or non WA CPA | 12 | 7% |
| Issuance or offering to issue audit, review, or compilation report by unauthorized individual | 4 | 2% |
| Records retention | 5 | 3% |
| Noncompliance with technical standards including Quality Assurance Review | 36 | 20% |
| Noncompliance with code of conduct including conflict of interest | 7 | 4% |
| Failure to respond to Board oversight/inquiries | 5 | 3% |
| Failure to meet/substantiate CPE | 54 | 30% |
| Use of title or holding out in public practice with a lapsed license/certificate or no CPA firm license | 34 | 19% |
| Good character determination for initial licensure | ||
| Sanction/denial of practice privilege by a federal, state, local or foreign jurisdiction | ||
| Sanction by non-governmental professionally related standard-setting entity | 1 | 1% |
| Felony/misdemeanor conviction/disbarment | 2 | 1% |
| Embezzlement, fraud, dishonesty, or negligence | 2 | 1% |
| Fiduciary malfeasance or breach of fiduciary duties/disbarment | 4 | 2% |
| Failure to complete engagement | 4 | 2% |
| Failure to pay individual federal income taxes | ||
| Incompetence | ||
| Misleading advertising | ||
| Reinstatement of suspended license request | 2 | 1% |
| Request for exemption from QAR | 2 | 1% |
| Tax Errors/Service Issues | 8 | 4% |
| Court Declared Incapacitation | ||
| Unauthorized transfer of client information | ||
| Class Action Fairness Act Notice | ||
| Total: | 182 | 100% |
The Board resolved the 182 cases during 2010 as follows:
| Closed via Board Order | 84 | 46% |
| Agreement to Resolve | 1 | 1% |
| Agreement to Administrative Sanctions | 41 | 22% |
| Close-May reopen | ||
| Reinstatement of Suspended License | 1 | 1% |
| Lack of/Insufficient evidence of violation | 28 | 15% |
| Insufficient nexus to Washington State | 1 | 1% |
| No public harm | 2 | 1% |
| Death of CPA/CPA-Inactive | 1 | 1% |
| Dismissed - Individual in compliance | 20 | 11% |
| Dismissed – Humanitarian/hardship considerations | 3 | 2% |
See Also:
2010 License and certificate suspensions (including stayed suspension) and revocations