The partnership of Smith, Frank \& Clark, a CPA firm, has been the auditor of Greenleaf, Inc., for many years. During the annual audit of the financial statements for the year ended December 31, \(20 \mathrm{X} 2\), a dispute developed over whether certain disclosures should be made in the financial statements. The dispute resulted in Smith, Frank & Clark's being dismissed and Greenleaf's engaging another CPA firm. Greenleaf demanded that Smith, Frank \& Clark turn over all working papers applicable to the Greenleaf audits or face a lawsuit. Smith, Frank \& Clark refused. Greenleaf has instituted a suit against Smith, Frank \& Clark to obtain the working papers.

Required:

a. Will Greenleaf succeed in its suit? Explain.

b. Discuss the rationale underlying the rule of law applicable to the ownership of audit working papers.