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Due to Its International Expansion,a Privately-Held Company Ended Its Relationship

Question 20

Multiple Choice

Due to its international expansion,a privately-held company ended its relationship with its local CPA firm and retained a larger,multi-office CPA firm.The newly-retained CPA firm has asked the former CPA firm to "forward all client records,financial statements,and workpapers still in its possession." The former CPA firm,however,has refused to do so.The former CPA firm:


A) Definitely is not in violation of the AICPA's Code of Professional Conduct
B) Is in violation of professional standards if all outstanding fees owed to it have been paid by its client
C) Is in violation of professional standards if the newly-retained CPA firm has offered to pay all reasonable costs associated with the transmission of documents
D) Is in violation of professional standards if the newly-retained CPA firm has, in good faith, communicated that receipt of these records is urgent due to a time-sensitive governmental filing that is overdue

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