This section contains general information of interest to the consumer including:

• Board's Purpose and General Information about the Board
• Areas that the Board does not regulate
• Complaints and Investigation Process
• Board Assistance in Selecting a CPA

What is the Board's Purpose?

The Washington State Board of Accountancy (Board) was created by the Legislature to regulate CPAs for the protection of the citizens of Washington State.  The purpose of the Washington State Board of Accountancy is defined in state law (Public Accountancy Act 18.04) to:

• Protect the public interest
• Promote the dependability of information which is used for guidance in financial transactions, or for accounting for or assessing the status or performance of commercial and noncommercial enterprises, whether public, private or governmental

In carrying out its mission, the Board licenses and regulates individual Certified Public Accountants (CPAs), non-CPA owners of CPA firms, and CPA firms.  All CPAs, non-CPA owners of CPA firms, and CPA firms must comply with the Public Accountancy Act (RCW 18.04) and the Board's rules (WAC 4-25).

In carrying out this responsibility, the Board has established strict education, exam, experience, and ethics requirements that individuals must meet to become CPAs.  The Board has also established sound continuing education requirements for CPAs and we audit to ensure CPAs meet those requirements.  Washington was one of the very first states to require every CPA and every CPA firm owner to take an ethics course every 3 years; most states now follow in our footsteps.  Additionally, every 3 years, the Board reviews each CPA firm's reports to confirm they have met the legally established technical standards.  If they have not met those standards, the Board takes action by ensuring the firm either brings their work up to the standards or stops issuing reports.

Who are the Board Members?

The Board consists of 9 volunteer members.  Biographies on each Board member can be found in About Us.

When and how often does the Board meet?

The Board's quarterly meetings are established by Board rule (WAC 4-25-510).  The meetings are open to the public and information on meeting location, time, and the Board's agenda can be found in  Calendar of Events.

Who are the Board Staff?

The Board has seven professional staff.  Information on the Board staff and their responsibilities can be found in About Us.

What are the key programs administered by the Board? 

1. Supporting the Nine Member Board's Activities:
   • Rule Making
   • Policy Setting
   • Administrative Hearings and
   • Sanctioning Activity 
2. Administering and Delivering the CPA Exam 
3. Evaluating License Applications to Ensure Applicants meet the Ethics, Education, Examination, and Experience Requirements
4. Issuing Licenses 
5. Evaluating Renewal and Reinstatement Applications 
6. Quality Assurance Review Program (Review of Practitioner's Audit, Review and Compilation Reports) 
7. Administering Brief Adjudicative Proceedings 
8. Audits of Continuing Professional Education 
9. Complaint Intake 
10. Investigations of Possible Violations of the Public Accountancy Act

How is the Board funded? 

The agency is funded 100% through CPA license fees; however, the agency's budget is authorized (appropriated) by the Legislature.

Are there any recent changes to the state law regulating CPAs?

During the 2001 and 2003 legislative sessions the Public Accountancy Act was amended.  The major changes included:

• Permitted minority ownership in CPA firms by non-CPA natural persons 
• Required registration of resident non-CPA firm owners
• Established ethics exam and ethics continuing professional education requirements for resident non-CPA firm owners
• Eliminated the Board's authority to issue CPA certificates
• Provided for the Board to issue CPA licenses only 
• Established practice privileges for CPAs licensed in other states provided they meet statutorily established qualification, fee and notification requirements 
• Required CPA certificateholders to use the title CPA-Inactive effective with the end of their current renewal cycle (July 1, 2003 or July 1, 2004) 
• Gave specific permission to the Board to publish information on persons or firms violating the Public Accountancy Act or Board Rule 
• Provided the Board authority to require full restitution to injured parties 
• Required Self-reporting of Sanctions or Enforcement efforts by Federal or State agencies 
• Audit and Review Work paper Retention requirements
• Increased the Board's fining authority to $30,000

What is the difference between a licensed CPA and a CPA certificateholder?

Until July 1, 2001 individuals were able to obtain either a CPA certificate or a CPA license.  As of July 1, 2001 the Board is authorized to issue CPA licenses only.

To qualify for a certificate, an individual had to meet the education, examination and ethics requirements.  Individuals holding a valid CPA certificate could use the title CPA in government, industry and academia; however, they could not use the title in public practice.

To qualify for a license, an individual must meet the education, examination, ethics, and experience requirements.  Individuals holding a valid CPA license can use the title CPA in public practice, government, industry, and academia.

When must a firm license with the Board?

CPA firms must license with the Board if they (1) use "CPA" in the firm title, or (2) provide audit, review, or compilation services.  In order to provide audit, review, or compilation services to the public, a CPA must hold a license (a Washington state CPA license if they are resident in Washington state) and they must offer the services from a CPA firm licensed by the Board.

Are Washington's CPA firms also regulated by the Securities and Exchange Commission (SEC) and do they have to comply with the Sarbanes-Oxley Act of 2002?

Of Washington's approximately 2,000 licensed CPA firms, approximately 60% perform audit, review or compilation services, and, only approximately 20 firms perform audits of publicly traded companies.  The SEC regulates CPA firms that audit publicly traded companies.  That means in Washington state, the majority of Washington's firms are not regulated by the SEC nor are they required to comply with the Sarbanes-Oxley Act of 2002.

What types of rules does the Board adopt in order to regulate CPAs?

The Board adopts rules (WAC 4-25) related to:

• Ethical and technical standards 
• Qualification requirements for licensure (education, examination, ethics, and experience requirements)
• Continuing professional education requirements 
• Quality review requirements 
• Renewal and reinstatement requirements 
• Prohibited practices 
• Board administration

What are some areas that the Board does not regulate? 

• CPA fees
• Corporations (except licensed CPA firms established as P.S. or P.C. Professional Service Corporations) 
• CEOs (unless they are CPAs) 
• CFOs (unless they are CPAs) 
• Non-CPA Accountants (unless they imposter a CPA - i.e., use the title or protected terms without a holding a CPA license or certificate) 
• Enrolled Agents 
• Certified Managerial Accountants, Certified Internal Auditors, Certified Fraud Examiners 
• Unlicensed firms of CPAs who do not use the title "CPA" in the firm name and who do not perform audit, review, or compilation services 
• Private businesses or businesses employing CPAs (unless the firm is required to be licensed by the Board) 
• Elected Auditors (unless they are CPAs or imposter as a CPA)

How do I file a complaint?

You must submit your complaint in writing.  The Board offers an optional  Complaint Form for your convenience.  Complete information on filing a complaint can be found in the Investigation section of this website.  Also, please see Common Complaints.  

What occurs during an investigation of a CPA?

Information on the Board's investigative activities can be found in the Investigation section of this web site.

How can the Board help me select a CPA?

The Board does not provide referral services.  We recommend you contact the local CPA society (https://www.wscpa.org/wscpa/), your chamber of commerce, peers in your business community, and/or your legal counsel.

We recommend you: 

1. Use the Board's Licensee Search to determine that the CPA you anticipate using is licensed by the Board.  If the CPA is not licensed by the Board, they may be in violation of Washington State law.  If you identify a CPA who is practicing in Washington State and is not licensed by the Board, please advise the Board by way of our Investigation process. 
2. Contact the Board's office, 360-664-9194, to determine if the CPA has a history of violations.  If a CPA has been sanctioned by the Board, you may request a copy of the Board's Order issuing the sanction.

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