Investigation Results/Statistics
2012
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 75 cases during 2012. Complaints or inquiries originated from the following sources:
| Source of Complaint | ||
| Agency oversight programs/Board initiated | 55 | 73% |
| Clients | 12 | 16% |
| Employer/Employee | 1 | 1% |
| Other CPAs | ||
| Media | ||
| Miscellaneous | 4 | 5% |
| Anonymous | ||
| Federal, state, local or foreign jurisdiction | 3 | 4% |
| Self-reported | ||
| Non-governmental professionally related standard-setting entity | ||
| Total | 75 |
The 75 cases closed during 2012 resulted from the following allegations:
| Administrative | ||
| Failure to change address | ||
| Failure to respond to Board oversight/inquiries | 6 | 8% |
| Request for reinstatement of suspended license/certificate | ||
| Code of Conduct | ||
| Conflicts | 2 | 3% |
| Confidentiality | ||
| Failure to complete engagement | 3 | 4% |
| Failure to pay individual federal income taxes | ||
| Independence | ||
| Misrepresentations/fees | ||
| Professional misconduct | 3 | 4% |
| Records retention | 2 | 3% |
| Competency | ||
| Noncompliance with technical standards including Quality Assurance Review | 35 | 47% |
| Sanction/denial of practice privilege by a federal, state, local or foreign jurisdiction | ||
| Sanction by non-governmental professionally related standard-setting entity | ||
| Tax reporting errors | 4 | 5% |
| Tax Lien USA Treasury | 1 | 1% |
| CPE | ||
| Failure to substantiate CPE on audit | 9 | 12% |
| Failure to substantiate CPE on renewal | 2 | 3% |
| Fraud | ||
| Embezzlement | 5 | 7% |
| Theft | ||
| Conspiracy | ||
| Other | 1 | 1% |
| Title Use: | ||
| Use of title or holding out in public practice by a nonCPA or non WA CPA | 1 | 1% |
| Issuance or offering to issue audit, review, or compilation report by unauthorized individual | ||
| Use of title or holding out in public practice with a lapsed license/certificate or no CPA firm license | 1 | 1% |
| Total: | 75 |
The Board resolved the 75 cases during 2012 as follows:
| Closed via Board Order | ||
| Fine/costs/other sanctions | 14 | 19% |
| Reinstatement of suspended license/certificate | 1 | 1% |
| Practice restriction | 2 | 3% |
| Suspension | 10 | 13% |
| Revocation | 3 | 4% |
Subtotal |
30 | |
| Administrative Sanctions Imposed | 30 | 40% |
| Lack of evidence of violation | 15 | 20% |
| Total | 75 |
See Also:
2012 License and certificate suspensions (including stayed suspension) and revocations