BOARD OF ACCOUNTANCY
[Filed May 29, 1998, 3:22 p.m.]
Date of Adoption: April 17, 1998.
Purpose: Compliance with standards is a rule of professional conduct necessary to establish and maintain high standards of competence and ethics of certified public accountants (CPAs) to protect the public interest.
Citation of Existing Rules Affected by this Order: Amending WAC 4-25-631 Compliance with standards.
Statutory Authority for Adoption: RCW 18.04.055(6).
Adopted under notice filed as WSR 98-01-232 on December 24, 1997.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, amended 1, repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 1, repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, amended 0, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 1, repealed 0.
Effective Date of Rule: Thirty-one days after filing.
May 28, 1998
Cheryl M. Sexton
AMENDATORY SECTION (Amending WSR 93-22-046, filed 10/28/93, effective 11/28/93)
WAC 4-25-631 Compliance with standards. A certified public accountant shall exercise due care and professional judgment in order to comply with the pertinent accounting principles, professional standards, regulations, releases and rules (hereinafter referred to as "standards") promulgated by the "appropriate bodies" for each endeavor undertaken. A certified public accountant shall be knowledgeable of federal, state and local law pertinent to the endeavor. If professional standards differ from board rule, board rules prevail.
Such "appropriate bodies" include, but are not limited to,
the Securities and Exchange Commission; the Financial Accounting
Standards Board; the Governmental Accounting Standards Board;
the American Institute of Certified Public Accountants;)) the
Internal Revenue Service; federal, state, and local audit,
regulatory and tax agencies; the American Institute of Certified
Public Accountants; and recognized educational and industry
Such "standards" include, but are not limited to:
(1) Regulation SX and the accounting series releases of the Securities and Exchange Commission;
(2) Generally accepted accounting principles and other comprehensive bases of accounting;
(3) Generally accepted auditing, review, compilation, attestation, consulting and peer review standards;
(4) Generally accepted government accounting standards;
(5) Consensus opinions of "appropriate bodies'" such as Emerging Issues Task Forces;
(6) Circular 230 of the IRS and "appropriate bodies'" guidance with respect to responsibilities in tax practice;
(7) Rules governing practice before regulatory agencies; and
(8) Guidance found in industry publications and textbooks and articles published by recognized accounting professionals or societies.
[Statutory Authority: RCW 18.40.055. 93-22-046, § 4-25-631, filed 10/28/93, effective 11/28/93.]