BILL REQ. #:  H-3817.2 

Prefiled 01/03/08. Read first time 01/14/08.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to enhancing the mobility of certified public accountants; amending RCW 18.04.025, 18.04.195, 18.04.205, 18.04.345, and 18.04.350; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds the multiple state licensing and registering requirements for certified public accountants to be cumbersome and an unnecessary constraint on the consumers of professional certified public accountant services. In the majority of United States jurisdictions, certified public accountants are licensed based on substantially equivalent education, national exam, and experience requirements. Yet in order to serve their various client needs, certified public accountants must often delay service while they first spend countless hours and dollars to register with regulators in the jurisdictions of the client.
     To clarify the legislative intent of chapter 294, Laws of 2001, reduce the administrative licensing burden on certified public accountants licensed in any substantially equivalent jurisdiction, and facilitate consumer choice, the legislature intends to eliminate the requirement for out-of-state certified public accountants to notify the Washington state board of accountancy of intent to practice and pay a fee, unless these individuals or firms are providing audit or opinion-type services. This requirement will be replaced with "consent to automatic jurisdiction." "Consent to automatic jurisdiction" clarifies the legal disciplinary authority of the Washington state board of accountancy over out-of-state certified public accountants practicing in Washington state, allowing the board to more efficiently protect consumers while facilitating practice mobility and consumer choice.

Sec. 2   RCW 18.04.025 and 2001 c 294 s 2 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Board" means the board of accountancy created by RCW 18.04.035.
     (2) "Certificate holder" means the holder of a certificate as a certified public accountant who has not become a licensee, has maintained CPE requirements, and who does not practice public accounting.
     (3) "Certified public accountant" or "CPA" means a person holding a certified public accountant license or certificate.
     (4) "State" includes the states of the United States, the District of Columbia, Puerto Rico, Guam, Commonwealth of the Northern Marianas, and the United States Virgin Islands.
     (5) "Reports on financial statements" means any reports or opinions prepared by licensees or persons holding practice privileges under substantial equivalency, based on services performed in accordance with generally accepted auditing standards, standards for attestation engagements, or standards for accounting and review services as to whether the presentation of information used for guidance in financial transactions or for accounting for or assessing the status or performance of commercial and noncommercial enterprises, whether public, private, or governmental, conforms with generally accepted accounting principles or ((other)) another comprehensive ((bases)) basis of accounting. "Reports on financial statements" does not include services referenced in RCW 18.04.350(((6))) (10) provided by persons not holding a license under this chapter.
     (6) ((The)) "Practice of public accounting" means performing or offering to perform by a person or firm holding itself out to the public as a licensee, for a client or potential client, one or more kinds of services involving the use of accounting or auditing skills, including the issuance of "audit reports," "review reports," or "compilation reports" on financial statements, or one or more kinds of management advisory, or consulting services, or the preparation of tax returns, or the furnishing of advice on tax matters. ((The)) "Practice of public accounting" shall not include practices that are permitted under the provisions of RCW 18.04.350(((6))) (10) by persons or firms not required to be licensed under this chapter.
     (7) "Firm" means a sole proprietorship, a corporation, or a partnership. "Firm" also means a limited liability company formed under chapter 25.15 RCW.
     (8) "CPE" means continuing professional education.
     (9) "Certificate" means a certificate as a certified public accountant issued prior to July 1, 2001, as authorized under the provisions of this chapter.
     (10) "Licensee" means the holder of a license to practice public accountancy issued under this chapter.
     (11) "License" means a license to practice public accountancy issued to an individual under this chapter, or a license issued to a firm under this chapter.
     (12) "Manager" means a manager of a limited liability company licensed as a firm under this chapter.
     (13) "NASBA" means the national association of state boards of accountancy.
     (14) "Quality assurance review" means a process established by and conducted at the direction of the board of study, appraisal, or review of one or more aspects of the attest or compilation work of a licensee or licensed firm in the practice of public accountancy, by a person or persons who hold licenses and who are not affiliated with the person or firm being reviewed.
     (15) "Peer review" means a study, appraisal, or review of one or more aspects of the attest or compilation work of a licensee or licensed firm in the practice of public accountancy, by a person or persons who hold licenses and who are not affiliated with the person or firm being reviewed, including a peer review, or any internal review or inspection intended to comply with quality control policies and procedures, but not including the "quality assurance review" under subsection (14) of this section.
     (16) "Review committee" means any person carrying out, administering or overseeing a peer review authorized by the reviewee.
     (17) "Rule" means any rule adopted by the board under authority of this chapter.
     (18) "Holding out" means any representation to the public by the use of restricted titles as set forth in RCW 18.04.345 by a person or firm that the person or firm holds a license under this chapter and that the person or firm offers to perform any professional services to the public as a licensee. "Holding out" shall not affect or limit a person or firm not required to hold a license under this chapter from engaging in practices identified in RCW 18.04.350.
     (19) "Natural person" or "individual" means a living, human being.
     (20) "Inactive" means the certificate is in an inactive status because a person who held a valid certificate before July 1, 2001, has not met the current requirements of licensure and has been granted inactive certificate holder status through an approval process established by the board.
     (21) "Attest" means providing the following financial statement services:
     (a) Any audit or other engagement to be performed in accordance with the statements on auditing standards;
     (b) Any review of a financial statement to be provided in accordance with the statements on standards for accounting and review services;
     (c) Any examination of prospective financial information to be performed in accordance with the statements on standards for attestation engagements; and
     (d) Any engagement to be performed in accordance with the public company accounting oversight board auditing standards.
     (22) "Compilation" means providing a service to be performed in accordance with statements on standards for accounting and review services that is presenting in the form of financial statements, information that is the representation of management (owners) without undertaking to express any assurance on the statements.
     (23) "Home office" is the location specified by the client as the address to which a service is directed.
     (24) "Person" means any individual, nongovernmental organization, or business entity regardless of legal form, including a sole proprietorship, firm, partnership, corporation, limited liability company, association, or not-for-profit organization, and including the sole proprietor, partners, members, and, as applied to corporations, the officers.
     (25)"Principal place of business" means the office location designated by the licensee for purposes of substantial equivalency and reciprocity.
     (26) "Sole proprietorship" means a legal form of organization owned by one person meeting the requirements of RCW 18.04.195.

Sec. 3   RCW 18.04.195 and 2003 c 290 s 1 are each amended to read as follows:
     (1) The board shall grant or renew licenses to practice as a CPA firm to applicants that demonstrate their qualifications therefore in accordance with this section.
     (a) The following must hold a license issued under this section:
     (i) Any firm with an office in this state performing attest services as defined in RCW 18.04.025(21) or compilations as defined in RCW 18.04.025(22);
     (ii) Any firm with an office in this state that uses the title "CPA" or "CPA firm"; or
     (iii) Any firm that does not have an office in this state but performs attest services described in RCW 18.04.025(21) (a), (c), or (d) for a client having its home office in this state.
     (b) A firm that is not subject to the requirements of subsection (1)(a)(iii) of this section may perform other professional services while using the title "CPA" or "CPA firm" in this state without a permit issued under this section only if:
     (i) The firm performs such services through an individual with practice privileges under RCW 18.04.350(2);
     (ii) The firm can lawfully do so in the state where said individuals with practice privileges have their principal place of business; and
     (iii) A firm performing services described in RCW 18.04.025 (21)(b) and (22) meets the board's quality assurance program requirements authorized by RCW 18.04.055(9) and the rules implementing that section.
     (2) A sole proprietorship ((engaged in business in this state and offering to issue or issuing reports on financial statements or using the title CPA or certified public accountant)) required to obtain a license under subsection (1) of this section shall license, as a firm, every three years with the board.
     (a) The sole proprietor shall hold and renew a license to practice under RCW 18.04.105 and 18.04.215, or, in the case of a sole proprietorship that must obtain a license pursuant to subsection (1)(a)(iii) of this section, be a licensee of another state who meets the requirements in RCW 18.04.350(2);
     (b) Each resident ((person)) individual in charge of an office located in this state shall hold and renew a license to practice under RCW 18.04.105 and 18.04.215; and
     (c) The licensed firm must meet competency requirements established by rule by the board.
     (((2))) (3) A partnership ((engaged in business in this state and offering to issue or issuing reports on financial statements or using the title CPA or certified public accountant)) required to obtain a license under subsection (1) of this section shall license as a firm every three years with the board, and shall meet the following requirements:
     (a) At least one general partner of the partnership shall hold and renew a license to practice under RCW 18.04.105 and 18.04.215, or, in the case of a partnership that must obtain a license pursuant to subsection (1)(a)(iii) of this section, be a licensee of another state who meets the requirements in RCW 18.04.350(2);
     (b) Each resident ((person)) individual in charge of an office in this state shall hold and renew a license to practice under RCW 18.04.105 and 18.04.215;
     (c) At least a simple majority of the ownership of the licensed firm in terms of financial interests and voting rights of all partners or owners shall be held by ((natural)) persons who are licensees or holders of a valid license issued under this chapter or by another state ((that entitles the holder to practice public accounting in this state)). The principal partner of the partnership and any partner having authority over issuing reports on financial statements shall hold a license under this chapter or issued by another state ((that entitles the holder to practice public accounting in this state)); and
     (d) The licensed firm must meet competency requirements established by rule by the board.
     (((3))) (4) A corporation ((engaged in business in this state and offering to issue or issuing reports on financial statements or using the title CPA or certified public accountant)) required to obtain a license under subsection (1) of this section shall license as a firm every three years with the board and shall meet the following requirements:
     (a) At least a simple majority of the ownership of the licensed firm in terms of financial interests and voting rights of all shareholders or owners shall be held by ((natural)) persons who are licensees or holders of a valid license issued under this chapter or by another state ((that entitles the holder to practice public accounting in this state)) and is principally employed by the corporation or actively engaged in its business. The principal officer of the corporation and any officer or director having authority over issuing reports on financial statements shall hold a license under this chapter or issued by another state ((that entitles the holder to practice public accounting in this state));
     (b) At least one shareholder of the corporation shall hold a license under RCW 18.04.105 and 18.04.215, or, in the case of a corporation that must obtain a license pursuant to subsection (1)(a)(iii) of this section, be a licensee of another state who meets the requirements in RCW 18.04.350(2);
     (c) Each resident ((person)) individual in charge of an office located in this state shall hold and renew a license under RCW 18.04.105 and 18.04.215;
     (d) A written agreement shall bind the corporation or its shareholders to purchase any shares offered for sale by, or not under the ownership or effective control of, a qualified shareholder, and bind any holder not a qualified shareholder to sell the shares to the corporation or its qualified shareholders. The agreement shall be noted on each certificate of corporate stock. The corporation may purchase any amount of its stock for this purpose, notwithstanding any impairment of capital, as long as one share remains outstanding;
     (e) The corporation shall comply with any other rules pertaining to corporations practicing public accounting in this state as the board may prescribe; and
     (f) The licensed firm must meet competency requirements established by rule by the board.
     (((4))) (5) A limited liability company ((engaged in business in this state and offering to issue or issuing reports on financial statements or using the title CPA or certified public accountant)) required to obtain a license under subsection (1) of this section shall license as a firm every three years with the board, and shall meet the following requirements:
     (a) At least one member of the limited liability company shall hold a license under RCW 18.04.105 and 18.04.215, or, in the case of a limited liability company that must obtain a license pursuant to subsection (1)(a)(iii) of this section, be a licensee of another state who meets the requirements in RCW 18.04.350(2);
     (b) Each resident manager or member in charge of an office located in this state shall hold and renew a license under RCW 18.04.105 and 18.04.215;
     (c) At least a simple majority of the ownership of the licensed firm in terms of financial interests and voting rights of all owners shall be held by ((natural)) persons who are licensees or holders of a valid license issued under this chapter or by another state ((that entitles the holder to practice public accounting in this state)). The principal member or manager of the limited liability company and any member having authority over issuing reports on financial statements shall hold a license under this chapter or issued by another state ((that entitles the holder to practice public accounting in this state)); and
     (d) The licensed firm must meet competency requirements established by rule by the board.
     (((5))) (6) Application for a license as a firm with an office in this state shall be made upon the affidavit of the proprietor or ((person)) individual designated as managing partner, member, or shareholder for Washington. This ((person)) individual shall hold a license under RCW 18.04.215.
     (7) In the case of a firm licensed in another state and required to obtain a license under subsection (1)(a)(iii) of this section, the application for the firm license shall be made upon the affidavit of an individual who qualifies for practice privileges in this state under RCW 18.04.350(2) who has been authorized by the applicant firm to make the application. The board shall determine in each case whether the applicant is eligible for a license. ((A partnership, corporation, or limited liability company which is licensed to practice under RCW 18.04.215 may use the designation "certified public accountants" or "CPAs" in connection with its partnership, limited liability company, or corporate name.))
     (8) The board shall be given notification within ninety days after the admission or withdrawal of a partner, shareholder, or member engaged in this state in the practice of public accounting from any partnership, corporation, or limited liability company so licensed.
     (((6))) (9) Licensed firms ((which)) that fall out of compliance with the provisions of this section due to changes in firm ownership ((or personnel)), after receiving or renewing a license, shall notify the board in writing within ninety days of its falling out of compliance and propose a time period in which they will come back into compliance. The board may grant a reasonable period of time for a firm to be in compliance with the provisions of this section. Failure to bring the firm into compliance within a reasonable period of time, as determined by the board, may result in suspension, revocation, or imposition of conditions on the firm's license.
     (((7))) (10) Fees for the license as a firm and for notification of the board of the admission or withdrawal of a partner, shareholder, or member shall be determined by the board. Fees shall be paid by the firm at the time the license application form or notice of admission or withdrawal of a partner, shareholder, or member is filed with the board.
     (((8))) (11) Nonlicensee owners of licensed firms are:
     (a) Required to fully comply with the provisions of this chapter and board rules;
     (b) Required to be ((a natural person)) an individual;
     (c) Required to be an active individual participant in the licensed firm or affiliated entities as these terms are defined by board rule; and
     (d) Subject to discipline by the board for violation of this chapter.
     (((9))) (12) Resident nonlicensee owners of licensed firms are required to meet:
     (a) The ethics examination, registration, and fee requirements as established by the board rules; and
     (b) The ethics CPE requirements established by the board rules.
     (((10))) (13)(a) Licensed firms must notify the board within thirty days after:
     (i) Sanction, suspension, revocation, or modification of their professional license or practice rights by the securities exchange commission, internal revenue service, or another state board of accountancy;
     (ii) Sanction or order against the licensee or nonlicensee firm owner by any federal or other state agency related to the licensee's practice of public accounting or violation of ethical or technical standards established by board rule; or
     (iii) The licensed firm is notified that it has been charged with a violation of law that could result in the suspension or revocation of the firm's license by a federal or other state agency, as identified by board rule, related to the firm's professional license, practice rights, or violation of ethical or technical standards established by board rule.
     (b) The board must adopt rules to implement this subsection and may also adopt rules specifying requirements for licensees to report to the board sanctions or orders relating to the licensee's practice of public accounting or violation of ethical or technical standards entered against the licensee by a nongovernmental professionally related standard-setting entity.

Sec. 4   RCW 18.04.205 and 2001 c 294 s 12 are each amended to read as follows:
     (1) Each office established or maintained in this state for the purpose of offering to issue or issuing attest or compilation reports ((on financial statements)) in this state or that uses the title "certified public accountant" or "CPA," shall register with the board under this chapter every three years.
     (2) Each office established or maintained in this state shall be under the direct supervision of a resident licensee holding a license under RCW 18.04.105 and 18.04.215.
     (3) The board shall by rule prescribe the procedure to be followed to register and maintain offices established in this state for the purpose of offering to issue or issuing attest or compilation reports ((on financial statements)) or that use the title "certified public accountant" or "CPA."
     (4) Fees for the registration of offices shall be determined by the board. Fees shall be paid by the applicant at the time the registration form is filed with the board.

Sec. 5   RCW 18.04.345 and 2001 c 294 s 17 are each amended to read as follows:
     (1) No ((person)) individual may assume or use the designation "certified public accountant-inactive" or "CPA-inactive" or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the ((person)) individual is a certified public accountant-inactive or CPA-inactive unless the ((person)) individual holds a certificate. ((Persons)) Individuals holding only a certificate may not practice public accounting.
     (2) No ((person)) individual may hold himself or herself out to the public or assume or use the designation "certified public accountant" or "CPA" or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the ((person)) individual is a certified public accountant or CPA unless the ((person)) individual qualifies for the privileges authorized by RCW 18.04.350(2) or holds a license under RCW 18.04.105 and 18.04.215.
     (3) No firm ((may hold itself out to the public as offering to issue or issuing reports on financial statements,)) with an office in this state may practice public accounting in this state or assume or use the designation "certified public accountant" or "CPA" or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the firm is composed of certified public accountants or CPAs, unless the firm is licensed under RCW 18.04.195 and all offices of the firm in this state are maintained and registered under RCW 18.04.205.
     (4) No firm may perform the services defined in RCW 18.04.025(21) (a), (c), or (d) for a client with its home office in this state unless the firm is licensed under RCW 18.04.195, renews the firm license as required under RCW 18.04.215, and all offices of the firm in this state are maintained and registered under RCW 18.04.205.
     (5) No ((person)) individual, partnership, limited liability company, or corporation offering public accounting services to the public may hold himself, herself, or itself out to the public, or assume or use along, or in connection with his, hers, or its name, or any other name the title or designation "certified accountant," "chartered accountant," "licensed accountant," "licensed public accountant," "public accountant," or any other title or designation likely to be confused with "certified public accountant" or any of the abbreviations "CA," "LA," "LPA," or "PA," or similar abbreviations likely to be confused with "CPA."
     (((5))) (6) No licensed firm may operate under an alias, a firm name, title, or "DBA" that differs from the firm name that is registered with the board.
     (((6))) (7) No ((person)) individual with an office in this state may sign, affix, or associate his or her name or any trade or assumed name used by the ((person)) individual in his or her business to any report ((designated as an "audit," "review," or "compilation,")) prescribed by professional standards unless the ((person)) individual holds a license to practice under RCW 18.04.105 and 18.04.215 ((and)), a firm holds a license under RCW 18.04.195, and all of the ((person's)) individual's offices in this state are ((licensed)) registered under RCW 18.04.205.
     (((7))) (8) No ((person)) individual licensed in another state may sign, affix, or associate a firm name to any report ((designated as an "audit," "review," or "compilation," unless the firm)) prescribed by professional standards, or associate a firm name in conjunction with the restricted title, unless the individual:
     (a) Qualifies for the practice privileges authorized by RCW 18.04.350(2); or
     (b) Is licensed under RCW ((18.04.195)) 18.04.105 and 18.04.215, and all of ((its)) the individual's offices in this state are maintained and registered under RCW 18.04.205.
     (((8))) (9) No ((person)) individual, partnership, limited liability company, or corporation not holding a license to practice under RCW 18.04.105 and 18.04.215, or firm not licensed under RCW 18.04.195 or firm not registering all of the firm's offices in this state under RCW 18.04.205, or not qualified for the practice privileges authorized by RCW 18.04.350(2), may hold himself, herself, or itself out to the public as an "auditor" with or without any other description or designation by use of such word on any sign, card, letterhead, or in any advertisement or directory.
     (10) For purposes of this section, because individuals practicing using practice privileges under RCW 18.04.350(2) are deemed substantially equivalent to licensees under RCW 18.04.105 and 18.04.215, every word, term, or reference that includes the latter shall be deemed to include the former, provided the conditions of such practice privilege, as set forth in RCW 18.04.350 (4) and (5) are maintained.
     (11) Notwithstanding anything to the contrary in this section, it is not a violation of this section for a firm that does not hold a valid license under RCW 18.04.195 and that does not have an office in this state to provide its professional services in this state so long as it complies with the requirements of RCW 18.04.195(1)(b).

Sec. 6   RCW 18.04.350 and 2001 c 294 s 18 are each amended to read as follows:
     (1) Nothing in this chapter prohibits any ((person)) individual not holding a license and not qualified for the practice privileges authorized by subsection (2) of this section from serving as an employee of a firm licensed under RCW 18.04.195 and 18.04.215. However, the employee or assistant shall not issue any ((accounting)) compilation, review, audit, or examination report on financial ((statement)) or other information over his or her name.
     (2)(((a))) An individual((,)) whose principal place of business is not in this state((, who has a valid certificate or license as a certified public accountant from another state, and (i) whose state of licensure has education, examination, and experience requirements that are deemed by the board to be substantially equivalent to this state's requirements or (ii) who, as an individual, has education, examination, and experience that are deemed by the board to be)) shall be presumed to have qualifications substantially equivalent to this state's requirements and shall have all the privileges of ((license holders)) licensees of this state without the need to obtain a license under RCW 18.04.105 ((or 18.04.195. However, such individuals shall notify the board, under such circumstances and in such manner as the board determines by rule, of their intent to enter the state under this section. The board shall have the authority to establish a fee for the practice privilege granted under this section by rule.)) if the individual:
     (a) Holds a valid license as a certified public accountant from any state that requires, as a condition of licensure, that an individual:
     (i) Have at least one hundred fifty semester hours of college education including a baccalaureate or higher degree conferred by a college or university;
     (ii) Achieve a passing grade on the uniform certified public accountant examination; and
     (iii) Possess at least one year of experience including service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax, or consulting skills, all of which was verified by a licensee; or
     (b) ((An individual that enters the state under this section and is granted this practice privilege shall abide by this chapter and the rules adopted under this chapter and shall be subject to discipline for violation of this chapter. However, such individual is exempt from the continuing education requirements of this chapter provided the individual has met the continuing education requirements of the state in which the individual holds a valid certificate or license. The board may accept NASBA's designation of the individual's state as substantially equivalent to national standards, or NASBA's designation of the applicant as substantially equivalent to national standards, as meeting the requirement for a certified public accountant to be substantially equivalent to this state's requirements)) Holds a valid license as a certified public accountant from any state that does not meet the requirements of (a) of this subsection, but such individual's CPA qualifications are substantially equivalent to those requirements. Any individual who passed the uniform CPA examination and holds a valid license issued by any other state prior to January 1, 2012, may be exempt from the education requirements in (a)(i) of this subsection for purposes of this section.
     (3) Notwithstanding any other provision of law, an individual who qualifies for the practice privilege under subsection (2) of this section may offer or render professional services, whether in person or by mail, telephone, or electronic means, and no notice, fee, or other submission shall be provided by any such individual. Such an individual shall be subject to the requirements of subsection (4) of this section.
     (((c))) (4) Any ((certificate or license holder)) individual licensee of another state exercising the privilege afforded under subsection (2) of this section and the firm that employs that licensee simultaneously consent((s)), as a condition of ((the grant of)) exercising this privilege:
     (((i))) (a) To the personal and subject matter jurisdiction and disciplinary authority of the board;
     (((ii))) (b) To comply with this chapter and the board's rules;
     (c) That in the event the license from the state of the individual's principal place of business is no longer valid, the individual will cease offering or rendering professional services in this state individually and on behalf of a firm; and
     (d) To the appointment of the state board which issued the certificate or license as their agent upon whom process may be served in any action or proceeding by this state's board against the certificate holder or licensee.
     (((d))) (5) An individual who qualifies for practice privileges under subsection (2) of this section may, for any entity with its home office in this state, only perform the following services through a firm that has obtained a license under RCW 18.04.195 and 18.04.215:
     (a) Any financial statement audit or other engagement to be performed in accordance with statements on auditing standards;
     (b) Any examination of prospective financial information to be performed in accordance with statements on standards for attestation engagements; or
     (c) Any engagement to be performed in accordance with public company accounting oversight board auditing standards.
     (6) A licensee of this state offering or rendering services or using their ((certified public accountant)) CPA title in another state shall be subject to disciplinary action in this state for an act committed in another state for which the ((certificate or permit holder)) licensee would be subject to discipline for an act committed in the other state ((provided the board receives timely notification of the act)). Notwithstanding RCW 18.04.295 and this section, the board ((may)) shall cooperate with and investigate any complaint made by the board of accountancy of another state or jurisdiction.
     (((3))) (7) Nothing in this chapter prohibits a licensee, a licensed firm, ((or)) any of their employees, or persons qualifying for practice privileges by this section from disclosing any data in confidence to other certified public accountants, quality assurance or peer review teams, partnerships, limited liability companies, or corporations of certified public accountants or to the board or any of its employees engaged in conducting quality assurance or peer reviews, or any one of their employees in connection with quality or peer reviews of that accountant's accounting and auditing practice conducted under the auspices of recognized professional associations.
     (((4))) (8) Nothing in this chapter prohibits a licensee, a licensed firm, ((or)) any of their employees, or persons qualifying for practice privileges by this section from disclosing any data in confidence to any employee, representative, officer, or committee member of a recognized professional association, or to the board, or any of its employees or committees in connection with a professional investigation held under the auspices of recognized professional associations or the board.
     (((5))) (9) Nothing in this chapter prohibits any officer, employee, partner, or principal of any organization:
     (a) From affixing his or her signature to any statement or report in reference to the affairs of the organization with any wording designating the position, title, or office which he or she holds in the organization; or
     (b) From describing himself or herself by the position, title, or office he or she holds in such organization.
     (((6))) (10) Nothing in this chapter prohibits any person or firm composed of persons not holding a license under ((RCW 18.04.215)) this chapter from offering or rendering to the public bookkeeping, accounting, tax services, the devising and installing of financial information systems, management advisory, or consulting services, the preparation of tax returns, or the furnishing of advice on tax matters, the preparation of financial statements, written statements describing how such financial statements were prepared, or similar services, provided that persons, partnerships, limited liability companies, or corporations not holding a license ((under RCW 18.04.215)) who offer or render these services do not designate any written statement as an "audit report," "review report," or "compilation report," do not issue any written statement which purports to express or disclaim an opinion on financial statements which have been audited, and do not issue any written statement which expresses assurance on financial statements which have been reviewed.
     (((7))) (11) Nothing in this chapter prohibits any act of or the use of any words by a public official or a public employee in the performance of his or her duties.
     (((8))) (12) Nothing contained in this chapter prohibits any person who holds only a valid certificate from assuming or using the designation "certified public accountant-inactive" or "CPA-inactive" or any other title, designation, words, letters, sign, card, or device tending to indicate the person is a certificate holder, provided, that such person does not perform or offer to perform for the public one or more kinds of services involving the use of accounting or auditing skills, including issuance of reports on financial statements or of one or more kinds of management advisory, financial advisory, consulting services, the preparation of tax returns, or the furnishing of advice on tax matters.
     (((9))) (13) Nothing in this chapter prohibits the use of the title "accountant" by any person regardless of whether the person has been granted a certificate or holds a license under this chapter. Nothing in this chapter prohibits the use of the title "enrolled agent" or the designation "EA" by any person regardless of whether the person has been granted a certificate or holds a license under this chapter if the person is properly authorized at the time of use to use the title or designation by the United States department of the treasury. The board shall by rule allow the use of other titles by any person regardless of whether the person has been granted a certificate or holds a license under this chapter if the person using the titles or designations is authorized at the time of use by a nationally recognized entity sanctioning the use of board authorized titles.