Current through Register Vol. 25-06, March 15, 2025
(1) For the purpose
of this rule:
(a) "Client" includes current
and former clients.
(b)
"Client-provided records" are accounting or other records, including hard copy
and electronic reproductions of such records, belonging to the client that were
provided to a licensee by, or on behalf of, the client.
(c) "Licensee-prepared records" are
accounting or other records that a licensee was not specifically engaged to
prepare and that are not in the client's books and records or are otherwise not
available to the client, thus rendering the client's financial information
incomplete. Examples include adjusting, closing, combining, or consolidating
journal entries (including computations supporting such entries) and supporting
schedules and documents that a licensee proposed or prepared as part of an
engagement (for example, an audit).
(d) "Licensee's work products" are
deliverables set forth in the terms of the engagement, such as tax
returns.
(e) "Working papers" are
all other items prepared solely for purposes of the engagement and include
items prepared by a licensee, such as audit programs, analytical review
schedules, and statistical sampling results and analyses, or items prepared by
the client at the re- quest of a licensee and reflecting testing or other work
done by a licensee.
(f) "Make
records available" means to provide the records in any format that is usable
and accessible, whether electronic or otherwise, regardless of the format in
which they were received.
(2) When an initial request for
client-provided records is received, a licensee should make those records in a
licensee's custody or control available. A licensee may charge a reasonable fee
for the time and expense incurred to retrieve, copy, and ship such records;
however, the client-provided records may not be withheld for nonpayment of such
fees.
(3) A licensee and the client
may agree to terms other than those stated in this rule. When this occurs, a
licensee should respond in accordance with such agreement. Otherwise, a
licensee should respond to a request for licensee-prepared records or a
licensee's work products that are in a licensee's custody or control and that
have not previously been made available to the client as follows:
(a) A licensee should make available
licensee-prepared records relating to a completed and issued work product;
however, such records may be withheld if fees are due to a licensee for that
specific work product.
(b)
Licensee's work products should be made available; however, such work products
may be withheld if fees are due to a licensee for the specific work product;
the work product is incomplete; for purposes of complying with professional
standards (for example, withholding an audit report with outstanding audit
issues); or threatened or outstanding litigation exists concerning the
engagement or a licensee's work.
(4) Once a licensee has complied with this
rule, a licensee is under no obligation to:
(a) Comply with any subsequent requests to
again make records or copies of records available. However, if after complying
with a request, a loss of records due to a natural disaster or an act of war is
experienced, a licensee should, when practicable, comply with an additional
request to make such records available.
(b) Retain records for periods that exceed
applicable professional standards, state and federal statutes and regulations,
and contractual agreements relating to the service performed.
(c) Make the records available to any other
associated party, such as the general partner, majority shareholder, or
spouse.
(5) Working
papers are a licensee's property, and a licensee is not required to make such
information available.
(6) In
fulfilling a request for a licensee's copy of client-provided records that was
previously made available to the client, licensee-prepared records, or a
licensee's work products, a licensee may:
(a)
Charge a reasonable fee for the time and expense incurred to retrieve, copy,
and ship such records and require payment before a licensee makes the records
available.
(b) Make the requested
records available in any usable and accessible format. However, a licensee is
not required to convert records that are not in electronic format to electronic
format. If the records are requested in a specific format and the records are
available in such format within a licensee's custody and control, the request
should be honored. In addition, a licensee is not required to make formulas
available, unless a licensee was engaged to make such formulas available as
part of a completed work product or the formulas were used to create
licensee-prepared records without which the client's financial information
would be incomplete.
(c) Make and
retain copies of any records that a licensee already made available.
(7) When a licensee is required to
return or make records available, a licensee should comply as soon as
practicable but, absent extenuating circumstances, no later than 45 days after
the request is made.
(8) For the
purposes of this rule, "licensees" includes licensees, CPA firms, nonlicensee
firm owners, employees of such persons, out-of-state individuals with practice
privileges under
RCW
18.04.350(1), and
out-of-state firms permitted to offer or render certain professional services
in this state under the conditions prescribed in
RCW
18.04.195.
