As a certified public accountant licensed by the State of Washington, you understand how important it is that you maintain your CPA license. Your job, your career, and your reputation all depend on you having an active CPA license. That's why you need to take it seriously when you learn that someone has filed a disciplinary complaint against you. The Lento Law Firm Professional License Defense Team understands what's at stake when the state Board of Accountancy initiates a disciplinary investigation or brings charges against a CPA. We can help you defend your license against suspension, revocation, or other penalties, but not unless you contact us. Call 888.535.3686 or use our contact form to schedule a consultation to learn more about how the Lento Law Firm Professional License Defense Team can help.
What Standards Does Washington Expect CPAs to Uphold?
The Washington State Board of Accountancy (BOA) expects licensed CPAs to meet a number of standards when providing accountancy services in the state. These include:
- Maintaining “objectivity and integrity” when providing “any professional service”
- Staying free from “conflicts of interest” when providing services to clients
- Not knowingly misrepresenting facts or subordinating their judgment to others, including clients
- Acting in an independent manner when performing professional services, according to the relevant accounting standards that apply to the particular type of service being provided
- Only performing those professional services that they “can reasonably expect” to deliver “with professional competence”
- Exercising “due care” when providing professional services
- Properly planning and supervising the professional services they deliver
- Gathering “sufficient relevant data” so that they have a “reasonable basis” for conclusions they reach or recommendations they make
CPAs who fail to meet any of these standards risk practicing in a way that can result in complaints being filed against them by clients, those who are entitled to rely on the CPA's work product, and governmental organizations such as the IRS, SEC, PCAOB, and others.
Grounds for CPA Discipline in Washington
There are a number of grounds that can form the basis for disciplinary investigations and charges against CPAs in Washington State. These include:
- Fraud or deceit related to the CPA examination (including cheating on the exam) or when applying for, renewing, or requesting reinstatement of a CPA license
- Acting in a dishonest, fraudulent, or negligent manner while practicing accounting in the state
- Making “misleading, deceptive, or untrue representations”
- Acting in a fiscally dishonest way, for example, by embezzling or by borrowing client funds without permission
- Failing to return client records within 45 days of the client's written request
- Failing to file a report or record required by local, state, or federal law, or filing a false one
- Selling unregistered securities unlawfully
- Taking client funds to pay the CPA's fees when the fees are in dispute
- Being convicted of any state or federal crime
- Acts constituting a conflict of interest, including self-dealing as a trustee or borrowing funds from a client
- Violating the Public Accountancy Act
- Violating the rules of professional conduct
- Concealing someone else's violation of the Public Accountancy Act or BOA rules
- Failing to cooperate with the BOA in investigations or complaints or to comply with a BOA order
- Failing to notify the BOA of adverse changes to the CPA's license or other practice rights by the IRS, SEC, PCAOB, or another state's BOA
The BOA notes that the list of acts for which a CPA may be disciplined is not “all-inclusive.” Accordingly, there may be other instances where the BOA receives a complaint about actions that don't necessarily fit within any of the above categories where the BOA will still initiate an investigation against the CPA and may bring disciplinary charges.
The Lento Law Firm Professional License Defense Team has represented CPAs and other professional license holders in disciplinary actions in Washington State and across the US. Our experienced professional license defense attorneys understand the rules, regulations, policies, and procedures that apply to CPA disciplinary cases in Washington and are here to help you protect your right to practice.
Don't Assume the Truth Will Protect You from CPA License Sanctions in Washington
One very natural response when you learn that a complaint has been made against you to the BOA is to contact the BOA investigator or another member of the BOA staff and explain what “really happened.” In almost every case, this will not put an end to any disciplinary investigation or proceeding and can often backfire. Working with an experienced professional license defense attorney will help you make sure that any information you feel should be provided to the BOA about a complaint filed against you is delivered in a way that protects your rights.
The Disciplinary Process After a Complaint is Filed
The first step in the BOA's disciplinary process is to evaluate the complaint to determine whether it's about the kind of issue that the BOA's disciplinary rules cover. The BOA notes that it won't investigate complaints about:
- Fee disputes, such as differences of opinion regarding the amount, timing, advance payment, or itemization requirements for CPA fees
- Matters that are the subject of active litigation
- Actions of non-CPA's; the BOA only regulates CPAs
- Communication problems, billing practice disputes, rude behavior, and other “frustrating matters that do not violate professional standards”
Assuming the complaint is about a matter that the BOA regulates and can discipline CPAs for, the BOA will begin an investigation. During the investigation, the BOA may ask the person who filed the complaint for additional information, and will likely also ask the CPA named in the complaint for information about the issues that the complaint raises.
CPAs have an obligation to respond to inquiries from the BOA and must do so within 20 days of when the request for information was mailed. Note that information requests are sent by physical mail to the last address that the BOA has for the CPA, so it's important to keep your address current. As noted above, failure to cooperate with a BOA investigation can lead to another complaint being filed against you.
Once the investigation is complete, the BOA will review its findings and decide whether to close the matter or whether to bring charges against the CPA.
If the BOA brings charges against you, it will inform you of those charges and why they are being brought and will also provide you with a proposed stipulation and an agreed order. While it may be tempting to simply sign the stipulation and accept the terms of the agreed order, it makes sense to review all of those documents with an experienced professional license defense attorney. You may have other options.
For example, it may be possible to negotiate with the BOA for an agreed order with more favorable terms. Or, you may strongly disagree with the charges, the stipulation, and the proposed order and feel that you would be better off if the matter were resolved with an administrative hearing. How you respond to the BOA's charges and proposed stipulation and order is something that the Lento Law Firm Professional License Defense Team can help you with. Our experienced attorneys will provide you with the advice and guidance you need so that you can make an informed decision about how best to proceed.
If you decide to take the matter to an administrative hearing, the process will be very similar to a court proceeding, except that it will take place before the presiding officer or administrative law judge who will act as the judge. It is likely that the judge will encourage you and the BOA to try to resolve the disciplinary matter through negotiation, but in the event that it is not successful, you can expect the hearing process to include the following steps:
- Prehearing conferences. These are typically scheduled to help streamline the eventual hearing and may consider a number of things, such as due dates for any discovery that may be allowed, when any motions will be due, dates for any pre-hearing briefs, and when the hearing will take place.
- Prehearing order. The judge will issue a prehearing order that will act as a road map for how the hearing is to proceed. The parties will have an opportunity to present the presiding officer with their views on various aspects of the hearing.
- The hearing. At the hearing, each side will have the chance to “respond, present evidence and argument, conduct cross-examination, and submit rebuttal evidence,” all within the boundaries of the prehearing order.
- The order. After the hearing, the judge will issue an order based on the evidence and testimony presented at the hearing. Orders must include “a statement of findings and conclusions, and the reasons and basis therefor” on all of the issues presented at the hearing. The judge may ask each side to submit proposed findings of fact and conclusions of law that the judge may use to craft the order.
- Reconsideration or appeal. If you disagree with the order issued by the judge, you may ask that it be reconsidered, assuming you have grounds for your request. Alternatively, you may appeal the order by filing a petition with the superior court, either the superior court for Thurston County or the court for the county where you live or work, if that is anywhere other than Thurston County.
Once the hearing process begins, there are time limits and filing requirements that must be followed if you want to have the disciplinary matter resolved by a judge. The Lento Law Firm Professional License Defense Team understands the procedures that apply at this stage. We regularly represent our professional license clients in hearings and court proceedings and will vigorously defend your rights and your case in any disciplinary matter where you are our client.
What Happens if You're Disciplined by the Washington State Board of Accountancy?
Depending on the severity of the matter, the BOA can take the following steps in response to a complaint against a CPA:
- Require the CPA to take additional continuing professional education
- Suspend the CPA's license
- Refuse to renew the CPA's license
- Revoke the CPA's license
- Fine the CPA up to $30,000
- Recover the costs of the investigation and legal fees from the CPA
How the Lento Law Firm Professional License Defense Team Can Help
The experienced attorneys that make up the Lento Law Firm Professional License Defense Team have helped professional license holders all over the US, including CPA's located in Washington, protect their licenses in cases where disciplinary complaints have been filed against them. Where a complaint has been filed against you with the Washington State Board of Accountancy, we can
- Represent you in any contacts you have with BOA investigators
- Help you respond in a timely way to inquiries received from the BOA
- Negotiate with the BOA in the event it decides to bring charges against you
- Represent you at your hearing if the disciplinary dispute cannot be resolved with a settlement
- Request reconsideration or appeal any adverse order issued following a hearing
No matter where you find yourself in the disciplinary process, the Lento Law Firm Professional License Defense Team can advise you, defend you, and help you protect your rights and your CPA license.
Your CPA license is the key to your livelihood. Contact the Lento Law Firm Professional License Defense Team today at 888.535.3686 or use our contact form to set up a confidential consultation to learn how we can help you protect your license, your future, and your reputation.
