WSR 13-22-001

PERMANENT RULES

BOARD OF ACCOUNTANCY

[Filed October 23, 2013, 1:39 p.m., effective January 1, 2014]

Effective Date of Rule: January 1, 2014.

Purpose: To transfer "knowledge of the Public Accountancy Act and board rules" from the experience competencies currently contained in WAC 4-30-070 to 4-30-080. The proposal will amend WAC 4-30-080 to require applicants for an initial individual certified public accountant (CPA) license to complete a course covering the Washington Public Accountancy Act, related board rules, and board policies. Under the rule proposal, applicants for an initial Washington state CPA license will be required to complete a self-study course, the related test, and score at least ninety percent.

Citation of Existing Rules Affected by this Order: Amending WAC 4-30-070 and 4-30-080.

Statutory Authority for Adoption: RCW 18.04.055 (7), (14), 18.04.215(5).

Adopted under notice filed as WSR 13-17-059 on August 15, 2013.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 2, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 2, Repealed 0.

Date Adopted: October 17, 2013.

Richard C. Sweeney, CPA

Executive Director

AMENDATORY SECTION (Amending WSR 10-24-009, filed 11/18/10, effective 12/19/10)

WAC 4-30-070 What are the experience requirements in order to obtain a CPA license?

(1) Qualifying experience may be obtained through the practice of public accounting and/or employment in industry or government. In certain situations, employment in academia may also provide experience to obtain some or all of the competency requirements. Qualifying experience may be obtained through one or more employers, with or without compensation, and may consist of a combination of full-time and part-time employment.

(2) Employment experience should demonstrate that it occurred in a work environment and included tasks sufficient to have provided an opportunity to obtain the competencies defined by subsection (3) of this section and:

(a) Covered a minimum twelve-month period (this time period does not need to be consecutive);

(b) Consisted of a minimum of two thousand hours;

(c) Provided the opportunity to utilize the skills generally used in business and accounting and auditing including, but not limited to, accounting for transactions, budgeting, data analysis, internal auditing, preparation of reports to taxing authorities, controllership functions, financial analysis, performance auditing and similar skills;

(d) Be verified by a licensed CPA as meeting the requirements identified in subsection (5) of this section; and

(e) Be obtained no more than eight years prior to the date the board receives your complete license application.

(3) Competencies: The experience should demonstrate that the work environment and tasks performed provided the applicant an opportunity to obtain the following competencies:

(a) ((Knowledge of the Public Accountancy Act and related board rules applicable to licensed persons in the state of Washington;

(b))) Assess the achievement of an entity's objectives;

(((c))) (b) Develop documentation and sufficient data to support analysis and conclusions;

(((d))) (c) Understand transaction streams and information systems;

(((e))) (d) Assess risk and design appropriate procedures;

(((f))) (e) Make decisions, solve problems, and think critically in the context of analysis; and

(((g))) (f) Communicate scope of work, findings and conclusions effectively.

(4) The applicant's responsibilities: The applicant for a license requesting verification is responsible for:

(a) Providing information and evidence to support the applicant's assertion that their job experience could have reasonably provided the opportunity to obtain the specific competencies, included on the applicant's Experience Affidavit form presented for the verifying CPA's evaluation;

(b) Producing that documentation and the completed Experience Affidavit form to a qualified verifying CPA of their choice;

(d) Maintaining this documentation for a minimum of three years.

(5) Qualification of a verifying CPA: A verifying CPA must have held a valid CPA license to practice public accounting in the state of Washington or be qualified for practice privileges as defined in RCW 18.04.350(2) for a minimum of five years prior to verifying the candidate's experience, including the date that the applicant's experience is verified. The five years do not need to be consecutive.

AMENDATORY SECTION (Amending WSR 10-24-009, filed 11/18/10, effective 12/19/10)

WAC 4-30-080 How do I apply for an initial individual CPA license?

(1) To qualify to apply for an initial license you must meet the following criteria and requirements:

(a) Good character requirements of RCW 18.04.105 (1)(a);

(b) Education requirements of WAC 4-30-060;

(d) ((Ethics course requirements by achieving and documenting)) Experience requirements of WAC 4-30-070;

(e) Achieve and document a passing grade of ninety percent or better on a course covering the complete content of the AICPA Code of Professional Conduct;

(((e) Experience requirements of WAC 4-30-070; and))

(f) Achieve and document a passing grade of ninety percent or better on a board-approved initial course covering the Washington State Public Accountancy Act, related board rules, and board policies.

(2) If more than four years have lapsed since you passed the examination, you must meet the CPE requirements of WAC 4-30-134 (((1))) (2)(a) within the thirty-six month period immediately preceding submission of your license application. That CPE must include CPE hours in ethics and regulation ((applicable to the practice of public accounting in Washington state)) meeting the requirements of WAC 4-30-134(((3))) (6). ((The)) This regulatory ethics portion of the combined one hundred twenty-hour CPE requirement must be completed within the six month period immediately preceding submission of your license application.

(((2))) (3) You must provide the required information, documents, and fees to the board either by making application through the board's online application system or on a form provided upon request. You must provide all requested information, documents and fees to the board before the application will be evaluated.

(((3))) (4) Upon assessment of your qualifications and approval of your application, your licensed status will be posted in the board's licensee data base and, therefore, made publicly available for confirmation. A hard copy of your license can be provided upon request.

(((4))) (5) Your initial license will expire on June 30 of the third calendar year following initial licensure.

(((5))) (6) You may not use the title CPA until the date the approval of your license is posted in the board's licensee data base and, therefore, made publicly available for confirmation.