BOARD OF ACCOUNTANCY
[Filed February 5, 2020, 8:51 a.m., effective March 7, 2020]
Effective Date of Rule: Thirty-one days after filing.
Purpose: Rule making is needed to: (1) Rename the rule; (2) eliminate the firm licensing requirement for CPA firms that do not perform or offer attest or compilation services; and (3) align the rule with the firm licensing requirements per chapter 18.04
RCW, which were changed with the passage of HB 1208.
Citation of Rules Affected by this Order: Amending WAC 4-30-112.
Statutory Authority for Adoption: RCW 18.04.055
Adopted under notice filed as WSR 19-22-001 on October 24, 2019.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.
Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: January 31, 2020.
Charles E. Satterlund, CPA
AMENDATORY SECTION(Amending WSR 16-17-036, filed 8/9/16, effective 9/9/16)
WAC 4-30-112((Must a firm holding a license from another state apply and obtain a Washington state license to hold out and practice in Washington state?))In state and out-of-state firm licensing requirements.
(1) A firm license must be obtained from the board if ((any of the following criteria apply:
(a)))the firm has an office in this state and performs attest or compilation services for clients in this state((; or
(b) The firm has an office in this state and, by any means, represents the firm to the public that the firm is a firm of certified public accountants)).
(2) A firm license is not required for a firm that does not have an office in this state but offers or renders attest services described in RCW 18.04.025
(1), and meets the requirements listed in RCW 18.04.195
(1)(a)(iii)(A) through (D).
(3) A firm license is not required to perform other professional services in this state, including compilation, review and other services for which reporting requirements are provided in professional standards, if the firm complies with the following:
(a) The firm performs such services through individuals with practice privileges under RCW 18.04.350
(2) and WAC 4-30-090 or reciprocal license under RCW 18.04.180
and board rules;
(b) The firm is licensed to perform such services in the state in which the individuals with practice privileges have their principal place of business; and
(c) The firm meets the board's quality assurance program requirements, when applicable.
(4) As a condition of this privilege, any nonresident firm meeting the requirement of subsection (2) or (3) of this section is deemed to have consented to:
(a) The personal and subject matter jurisdiction and disciplinary authority of this state's board;
(b) Comply with the Public Accountancy Act of this state, chapter 18.04
RCW, and this board's rules contained in Title 4 WAC;
(c) Cease offering or rendering professional services in this state through a specific individual or individuals if the license(s) of the individual(s) through whom the services are offered or rendered becomes invalid;
(d) Cease offering or rendering specific professional services in this state through an individual or individuals if the license(s) from the state(s) of the principal place of business of such individual(s) is restricted from offering or performing such specific professional services;
(e) The appointment of the state board which issued the firm license as their agent upon whom process may be served in any action or proceeding by this state's board against firm licensee;
(f) Not render those services described in subsection (1)(((c)
)) of this section for a client with a home office in this state unless the firm that has obtained a license from this state (RCW 18.04.195
) and this section; and
(g) Not render any professional services in this state through out-of-state individual(s) who are not licensed to render such services by the state(s) in which the principal place of business of such individual(s) is (are) located.