Date of Adoption: April 28, 2000.

Purpose: To identify what CPA firm names must be approved by the board and what CPA firm names are prohibited.

Citation of Existing Rules Affected by this Order: Amending WAC 4-25-661 What firm names must be approved by the board and what firm names are prohibited?

Statutory Authority for Adoption: RCW 18.04.055(8).

Adopted under notice filed as WSR 00-07-010 on March 3, 2000.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.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: June 30, 2000.

May 8, 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.]

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