Washington State Board of Accountancy Complaints and Violations

Results of Investigations-2002

In carrying out its mission "to promote dependable, accessible financial information" the Board is responsible for investigating complaints against CPAs. 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.

During 2002 the Board closed 58 cases. Complaints or inquiries originated from the following sources:

Source Percent

Agency oversight programs 39%

Clients 37%

Miscellaneous 15%

Other CPAs 7%

Anonymous 2%

The 58 cases closed during 2002 resulted from the following allegations:

Use of title or holding out in public practice with a lapsed license/certificate 20 33%

Noncompliance with code of conduct including conflict of interest and confidentiality 7 13%

Embezzlement, fraud, dishonesty, or negligence; Fiduciary malfeasance or breach of fiduciary duties 6 11%

Noncompliance with technical standards 5 9%

Records retention 4 7%

Use of title or holding out in public practice by a nonCPA 4 7%

Failure to meet/substantiate CPE 3 5%

Failure to respond to Board oversight 3 5%

IRS/SEC denial of practice privilege 3 4%

Good character determination for initial licensure 1 2%

Reinstatement of suspended license request 1 2%

Suspected cheating on CPA Exam 1 2%

Total: 58 100%

The Board resolved the 58 cases during 2002 as follows:

Closed via Board Order 37%

Lack of evidence of violation 57%

Closed via an informal agreement (other than a Board Order) 6%

The Board also referred three cases to other enforcement agencies.

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