WSR 01-11-076

PREPROPOSAL STATEMENT OF INQUIRY

BOARD OF ACCOUNTANCY


[ Filed May 15, 2001, 12:33 p.m. ]

Subject of Possible Rule Making: Chapter 4-25 WAC.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 18.04.055.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: E2SSB 5593 passed through the 2001 legislative session significantly revising the Public Accountancy Act (chapter 18.04 RCW). The board needs to thoroughly review all of its rules for statutory authority and adopt, amend, or repeal rules to implement the revisions to chapter 18.04 RCW. This includes provisions on:


Public protection and consumer alerts, qualifications to be a licensee including transition to an automated examination and education and experience requirements.

Regulation of certified public accountants (CPAs); licensing requirements for CPA firms.

Ownership of CPA firms.

Requirements for non-CPA owners of CPA firms.

Criteria for determining which states are deemed substantially equivalent to Washington.

Requirements for CPAs from other states and countries to demonstrate that they have met qualifications that are substantially equivalent to the CPA qualifications of this state and for reporting violations of board rules.

Regulation of the activities of persons holding licenses or certificates (including a new inactive certificate-holder status).

Continuing professional education requirements for licensees, inactive certificate-holders, and resident non-CPA owners of CPA firms.

Nonresident CPA permits to practice in Washington state.

Broadened sanctioning abilities.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Agency study.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by writing to Dana M. McInturff, Executive Director, Washington State Board of Accountancy, P.O. Box 9131, Olympia, WA 98507-9131, (360) 586-0163, fax (360) 664-9190, e-mail danam@cpaboard.wa.gov.

May 15, 2001

Dana M. McInturff, CPA

Executive Director

Washington State Code Reviser's Office