The Washington State Board of Accountancy (WBOA) has been looking to make a few rule changes this year to streamline some processes for active CPAs and prospective CPA candidates.

At their board meeting on October 29, the WBOA approved a rule change that brings Washington into compliance with the new CPA exam which will begin rolling out in 2024. This new exam is a part of the CPA Evolution initiative that NASBA and AICPA have been working on. Another change adjusts the 18-month window of time that CPA candidates have to complete the exam. Previously the 18-month clock started when a candidate took one section of the exam. Under this rule change, the clock will start from the date an exam section grade is received. This now matches other states’ rules in this area and eliminates the need for candidates to guess if they passed the section before scheduling further tests. The next steps for CPA Evolution will be colleges integrating new materials and coursework into their classes in the coming years.

The WBOA is also proposing a new rule and will be collecting feedback on it at their January meeting for streamlined Board proceedings. Currently, if a Board order lists a set of criteria for a CPA to follow to resolve their dispute a Board member needs to lift the stay once it has been completed. The new proposed rule will allow WBOA staff to process a Board order as completed once all parts are finished. If the order is not met or further issues come to light the Board will retain the ability to modify the order or impose further punishment. This makes the adjudication process within the WBOA move more quickly for those who complete the requirements of their Board orders.

In 2022 the WBOA will probably need to take rulemaking action to make sure Washington law follows expected new non-compliance with laws and regulations (NOCLAR) standards. CPAs are prohibited from divulging client or employer information without consent, but in some instances if a CPA learns of a client or employers’ illegal activity, the existing NOCLAR framework may require disclosure of this client information. Earlier this year the AICPA’s Auditing and Standards Board shared a proposed Statement on Auditing Standards “Communication with Predecessor Auditor Regarding Fraud and Noncompliance with Laws and Regulations.” This draft hopes to align with new proposed changes to the AICPA Code of Professional Conduct around NOCLAR. As these multiple moving pieces continue through their respective processes at the national level, the WBOA will need to monitor and identify the areas of our Washington law that must be updated with these new definitions and standards.

There are many areas of the law that are and will continue to be changed. The WSCPA Advocacy team will continue to keep you up to date with the changes as they happen via the All Things Advocacy blog.

Mike Nelson is the WSCPA Manager of Government Affairs. You can contact him at mnelson@wscpa.org.