Common Complaints
The following examples are some of the
more common types of disputes that the Board reviews.
Fee Disputes
Amount of fees charged by a licensee
is the complaint most frequently brought to the Board's attention.
Disagreement between licensees and clients about fees does not constitute
illegal or unethical conduct, except in unusual circumstances. Billings
and fees have traditionally been in the domain of the commercial dispute
resolution systems (courts, arbitration, and so on). The Board has no jurisdiction over fee disputes and
may be unable to help unless there is another basis for the
complaint.
The
CPA’s professional organization, the Washington Society of Certified
Public Accountants (WSCPA)
maintains a client complaint committee to assist in resolving client-CPA
disputes provided the CPA is a member of the WSCPA. You may contact the
WSCPA at: 902 - 140th Avenue
NE, Bellevue, WA 98005, 1-800-272-8273, https://www.wscpa.org/wscpa/ or memberservices@wscpa.org.
You
might also consider contacting a Dispute
Resolution Center in your area.
CPAs and
CPA firms normally charge according to the amount of time
required to perform the services requested. There are no "fee
schedules" common to the profession. Fees vary depending on the
type of service required, the prevailing costs in the community, the CPA's
level of expertise, and the complexity of the work.
Buyers of professional accounting
services should always agree up front to what the total fee or the hourly
rate will be prior to using the services of a licensee. Many CPAs
will offer you services for a particular fee, and document those services
on an engagement letter. Not all licensees use engagement letters,
but they are a wise choice for both accountant and client. The
engagement letter should spell out exactly what services are to be
provided, the timeline involved, the responsibilities of both parties, and
the fee that will be charges. Most accountants charge an hourly
rate, rather than a set fee. The client and accountant both sign the
engagement letter. The client receives a copy and the accountant
keeps a copy. If there are ever any questions, this engagement
letter becomes a valuable resource. Naturally, the engagement letter
should be updated when the services change.
Washington law allows CPAs, CPA firms,
CPA firm owners to accept referral fees, contingent fees, or commissions
provided they are NOT providing attest services to their clients. When entering into engagements where the CPA, CPA firm, or CPA firm owner
will or may be compensated on a commission, referral or contingent fee
basis, written disclosure of (a) the fee arrangement, (b) the method of calculating the fee or amount of fee, and
(c) the CPA’s, CPA firm’s, or firm owner’s role as the
client’s advisor must be provided in advance of
the client’s acceptance of the engagement. Please see the Board's Compensation
Policy.
Tax Return Errors
Tax return errors or
findings in an Internal Revenue Service (IRS) or state tax audit are
frequently heard complaints. Typically, the Board does not
investigate complaints regarding a CPA's minor or immaterial tax return
errors or findings. Taxpayers are required by law to ensure that the information on a return
be accurate and complete. Before engaging a CPA for this purpose, it
is helpful to clarify what the CPA will and will not do if you are audited
or if an error is found on your return, as well as what will be charged if
you are audited.
Failure to Return
Records
Failure to return records
to a client is another common complaint. Licensees, upon request and
within a reasonable period of time must furnish a client or former client
with:
-
Any original papers
the client provided to the CPA, or any record the CPA obtained on
behalf of the client
-
A copy of the CPA's
working papers or electronic documents, provided the working papers or
electronic documents include records that would ordinarily constitute
part of the client's records and are not otherwise available to the
client
Board
rule (WAC 4-25-640) prohibits
CPAs from refusing to return client records pending client payment of
outstanding fees.
In
order for the Board to investigate a complaint that a CPA has refused to
return your records, the Board needs evidence that you (or your agent) requested
the CPA to return the records and that you provided the CPA with
reasonable notice for returning the records. If you are having
difficulties with obtaining your records from a CPA, the Board recommends
you submit your records request to the CPA in writing. The written
request should detail the specific records that you want returned and
preferably be sent by certified mail. If the CPA does
not return your records, you will need to include a copy of your
records request with your complaint.
Disclosure of
Confidential Client Information
The Board occasionally
receives complaints regarding a CPA's disclosure of confidential client
information. This includes income (unless it is public
record), investments, taxes owed, retirement plans, addresses, phone
numbers, etc. See RCW
18.04.405. If you believe your CPA has disclosed confidential
information, in order to investigate the complaint you must provide the
Board with specific information regarding what confidential information
was allegedly disclosed and to whom the confidential information was
disclosed.
Claiming to be a CPA
without Holding a License
Approximately 25% of
the Board's investigations deal with individuals falsely claiming to be a
CPA. Claiming to be a CPA or a CPA firm without holding a CPA
license or CPA certificate is a violation of Washington State law.
If you are aware of an individual or a firm claiming to be a CPA in their
advertisements, letterhead, business cards, etc., and that individual or
firm is not listed in the Licensee Search,
please notify the Board. If you are aware of an individual or a firm
offering compilation, review, or audit services and the individual or firm
is not listed in the Licensee Search,
please notify the Board.
Complaints against Non-CPA
Accountants or Bookkeepers
The Board often
receives complaints against accountants or bookkeepers. The
Board does not have any authority over non-CPA bookkeepers or accountants
For
complaints against non-CPA accountants or bookkeepers, the Board suggest you
contact the Attorney General’s Office - Consumer
Protection Division:
Office
of the Attorney General, Consumer Protection Division
1-800-551-4636
or (206) 464-7744
http://www.atg.wa.gov/FileAComplaint.aspx
If you are uncertain
whether your issue can be handled by the Board, please contact
us. We will help you determine if we can be of assistance.
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