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Problem 1: Warfield & Shoup, CPA's 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 Publishing decided to utilize the services of Danza & Zona, CPA's to audit their financial statements for the year ended December 31, 20X5. In conjunction with their audit, Danza & Zona, CPA's has requested copies of schedules supporting a number of adjusting entries related to the December 31, 20X4 audit. In addition, the request included the return of Siesta Publishing's records that had been given to Warfield & Shoup, CPA's but had yet to be returned. At the time of the request, Warfield &Shoup, CPA's had not been paid for the audit engagement for December 31, 20X4 and the firm has refused to provide Danza & Zona, CPA's 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? a) The refusal to return client records is an act discreditable to the profession, but the refusal to provide copies of schedules supporting adjusting entries is not an act discreditable to the profession. b) Only the refusal to provide copies of schedules supporting adjusting entries is an act discreditable to the profession. c) Both the refusal to provide copies of schedules supporting adjusting entries and the refusal to return client records are acts discreditable to the profession. d) Neither the refusal to provide copies of schedules supporting adjusting entries and the refusal to return client records are acts discreditable to the profession.
RZ Players accumulated the following production and overhead cost data for the past five months related to its production of cell phones:
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