PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 99-23-058.
Title of Rule: WAC 4-25-661 Improper CPA firm names.
Purpose: To identify what CPA firm names must be approved by the board and what CPA firm names are prohibited.
Statutory Authority for Adoption: RCW 18.04.055(8).
Statute Being Implemented: RCW 18.04.055(8).
Summary: The rule governs the names CPA firms may not use to prevent deception of the general public.
Reasons Supporting Proposal: To promote clarity, ensure effective communication, ensure fairness in interpretation of the rule, and promote public/consumer protection from misleading CPA firm names.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Dana M. McInturff, CPA, 210 East Union, Suite A, Olympia, (360) 586-0163.
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: "Improper firm names" is a rule of professional conduct necessary to govern sole proprietors, partnerships, and corporations practicing public accounting concerning their names to protect the public from being mislead.
Proposal Changes the Following Existing Rules: Amendments to the rule include:
1. Elimination of the prohibition from using "and Company or & Co." in a CPA firm name.
2. Elimination of the word "fictitious."
3. Revisions to make the rule easier to read and understand.
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: Wyndham Garden Hotel -- SeaTac, 18118 Pacific Highway South, SeaTac, WA 98188, on April 28, 2000, at 9:30 a.m.
Assistance for Persons with Disabilities: Contact Cheryl Sexton by April 21, 2000, 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 April 26, 2000.
Date of Intended Adoption: April 28, 2000.
February 25, 2000
Dana M. McInturff, CPA
Executive Director
OTS-3846.1
AMENDATORY SECTION(Amending WSR 93-22-046, filed 10/28/93,
effective 11/28/93)
WAC 4-25-661
((Improper CPA firm names.)) What firm names
must be approved by the board and what firm names are prohibited?
((A firm name is misleading, and thus prohibited if, among other
things:))
(1) ((The firm name)) A firm name that does not consist of
the name(s) of one or more present or former owners must be
approved in advance by the board as not being deceptive or
misleading.
(2) Misleading or deceptive firm names are prohibited. The following are examples of misleading firm names. The board does not intend this listing to be all inclusive. The firm name:
(a) Implies the existence of a corporation when the firm is not a corporation (as by the use of the abbreviations "P.C.," "P.S.," or "Inc. P.S.");
(((2) The firm name)) (b) Implies the existence of a
partnership when ((there is not a partnership (as in "Smith &
Jones, CPA's"))) one does not exist;
(((3) The firm name)) (c) Includes the name of a person who
is neither a present nor a past partner or shareholder of the
firm; or
(((4) The firm name)) (d) Includes the ((designation)) words
"and Associates," "& Associates," or "and Assoc.," (("and
Company," or "& Co.")) when there are not ((in fact)) at least
two owners and/or employees ((who hold)) holding a valid CPA
license ((to practice public accounting)).
((A fictitious firm name (that is, one not consisting of the
names of one or more present or former owners) may not be used by
a licensee in the practice of public accounting unless such name
has been registered with and approved by the board as not being
false or misleading.))
[Statutory Authority: RCW 18.40.055. 93-22-046, § 4-25-661, filed 10/28/93, effective 11/28/93.]