WSR 98-01-228

PROPOSED RULES

BOARD OF ACCOUNTANCY

[Filed December 24, 1997, 11:59 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-22-076.

Title of Rule: WAC 4-25-551 Duty to respond to board inquiry.

Purpose: To require certified public accountants (CPAs) and CPA firms regulated by the Board of Accountancy to respond in writing to an agency communication requiring a response.

Statutory Authority for Adoption: RCW 18.04.055.

Statute Being Implemented: RCW 18.04.055.

Summary: Requires certified public accountants (CPAs) and CPA firms to respond to an agency inquiry within twenty days.

Reasons Supporting Proposal: In order for the board to effectively administer chapter 18.04 RCW, Certified public accountants (CPAs) and CPA firms must cooperate with the agency by responding to inquiries of the agency within a reasonable time period.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Dana M. McInturff, CPA, 210 East Union, Suite A, Olympia, (360) 664-9194.

Name of Proponent: Board of Accountancy, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 4-25-551 requires certified public accountants (CPAs) and CPA firms to respond to an agency inquiry in writing within twenty days of the date the inquiry is posted in the United States mail. With cooperation from the CPAs and CPA firms, the agency can effectively administer chapter 18.04 RCW.

Proposal Changes the Following Existing Rules: The existing rule requires "licensees" to respond to board inquiry. RCW 18.04 025 defines a licensee as one who holds a valid license. Licensees represent approximately one half of the total number of persons currently under the authority of the Board of Accountancy. RCW 18.04.295 allows the board to take action against a "certified public accountant" and CPA firms for failure to cooperate with the board by not responding to board inquiry. Under current board policy, the board requires all "certificate holders" (not just licensees) to respond to board inquiry. Amendment will clarify the rule to include all persons and firms under the authority of the Board of Accountancy.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule will not have more than minor economic impact on business.

RCW 34.05.328 does not apply to this rule adoption. The Board of Accountancy is not one of the agencies required to submit to the requirements of RCW 34.05.328.

Hearing Location: Bank of California Building, 900 4th Avenue, 24th Floor, Attorney General Training Center, Seattle, WA, on Thursday, January 29, 1998, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Cheryl Sexton by January 26, 1998, TDD (800) 833-6384, or (360) 664-9194.

Submit Written Comments to: Dana M. McInturff, P.O. Box 9131, Olympia, WA 98507-9131, FAX (360) 664-9190, by January 28, 1998.

Date of Intended Adoption: January 29, 1998.

December 24, 1997

Dana M. McInturff, CPA

Executive Director

AMENDATORY SECTION [(Amending WSR 93-12-072, filed 5/27/93)]

WAC 4-25-551 ((Duty to respond to board inquiry.)) Must I respond to inquiries from the board? ((A licensee shall respond in writing to any communication from the board requesting a response, within twenty days of the mailing of such communications by registered or certified mail, to the last address furnished to the board by the licensee.)) All CPA's and CPA firms must respond, in writing, to board communications requesting a response. Your response must be made within twenty days of the postmarked date on the board's communication to you. Communications from the board to you are directed to the last address you furnished the board.

[Statutory Authority: RCW 18.04.055. 93-12-072, 4-25-551, filed 5/27/93, effective 7/1/93.]