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Warfield and Shoup, CPAs audited the financial statements of Siesta Publishing for the year ended December 31, 20X4 and issued their audit report on February 2, 20X5. After a dispute with the firm, Siesta decided to use the services of Danza-Zona, CPAs to audit their financial statements for the year ended December 31, 20X5. Danza-Zona has requested copies of schedules supporting a number of adjusting entries related to the December 31, 20X4 audit. The request included the return of Siesta's records that had been given to Warfield-Shoup but had yet to be returned. At the time of the request, Warfield-Shoup had not been paid for the audit engagement for December 31, 20X4 and the firm has refused to provide Danza and Zona with the requested supporting documentation or the client's records until they are paid in full.
Is the firm's refusal to provide the requested documentation of adjusting entries, along with its refusal to return any of Siesta Publishing's records in its possession, an act discreditable to the profession?
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