Washington State Board of Accountancy Complaints and Violations

Results of Investigations-2003

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 2003 the Board closed 62 cases. Complaints or inquiries originated from the following sources:

Source Percent

Agency oversight programs 25 39%

Clients 15 25%

Miscellaneous 14 22%

Other CPAs 3 5%

Anonymous 5 9%

The 62 cases closed during 2003 resulted from the following allegations:

Use of title or holding out in public practice with a lapsed license/certificate 16 26%

Noncompliance with code of conduct including conflict of interest and confidentiality 3 5%

Embezzlement, fraud, dishonesty, or negligence; Fiduciary malfeasance or breach of fiduciary duties 4 6%

Noncompliance with technical standards 9 15%

Records retention 6 10%

Use of title or holding out in public practice by a nonCPA 8 14%

Failure to meet/substantiate CPE 4 6%

Failure to respond to Board oversight 4 6%

Good character determination for initial licensure 4 6%

IRS/SEC sanction/denial of practice privilege 2 3%

Reinstatement of suspended license request 2 2%

Suspected cheating on CPA Exam

Total: 62 100%

The Board resolved the 62 cases during 2003 as follows:

Closed via Board Order 39 63%

Lack of evidence of violation 23 37%

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

Information on Board orders and other sanctioning agreements are available under the Public Disclosure Act by contacting the Board's office at webmaster@cpaboard.wa.gov or (360) 664-9194.

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