All of the above are cooperative arrangements that would impair the member firm's independence Question 47 Warfield \& Shoup, CPAs audited the financial statements of Siesta Publishing for the year e December 31, 20X4 and issued their audit report on February 2, 20X5. After a dispute with Siesta decided to use the services of Danza \& Zona, CPAs to audit their financial statement year ended December 31, 20X5. Danza \& Zona has requested copies of schedules support number of adjusting entries related to the December 31, 20X4 audit. The request include return of Siesta's records that had been given to Warfield & Shoup but had yet to be retur time of the request, Warfield \& Shoup had not been paid for the audit engagement for De 20X4 and the firm has refused to provide Danza \& 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 refusal to return any of Siesta Publishing's records in its possession, an act discreditable profession? Yes. The refusal to return client records is an act discreditable to the profession, but the refusal to pr schedules supporting adjusting entries is not. Arnold, a California CPA, has been engaged by Silver Lining Inc. to revie recommend business software to meet specific needs. Arnold does not Silver Lining but wishes to receive a commission from the software com recommends. May he do so? Yes, provided he tells the client he is receiving a commission or emails the client. No, commissions are not allowed in California. Yes, provided he discloses the commission in writing on his letterhead, or he sig tion, the client must sign and date the disclosure statement, acknowledging that th Yes, provided he discloses the commission in writing to the client. All of the above are cooperative arrangements that would impair the member firm's independence Question 47 Warfield \& Shoup, CPAs audited the financial statements of Siesta Publishing for the year e December 31, 20X4 and issued their audit report on February 2, 20X5. After a dispute with Siesta decided to use the services of Danza \& Zona, CPAs to audit their financial statement year ended December 31, 20X5. Danza \& Zona has requested copies of schedules support number of adjusting entries related to the December 31, 20X4 audit. The request include return of Siesta's records that had been given to Warfield & Shoup but had yet to be retur time of the request, Warfield \& Shoup had not been paid for the audit engagement for De 20X4 and the firm has refused to provide Danza \& 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 refusal to return any of Siesta Publishing's records in its possession, an act discreditable profession? Yes. The refusal to return client records is an act discreditable to the profession, but the refusal to pr schedules supporting adjusting entries is not. Arnold, a California CPA, has been engaged by Silver Lining Inc. to revie recommend business software to meet specific needs. Arnold does not Silver Lining but wishes to receive a commission from the software com recommends. May he do so? Yes, provided he tells the client he is receiving a commission or emails the client. No, commissions are not allowed in California. Yes, provided he discloses the commission in writing on his letterhead, or he sig tion, the client must sign and date the disclosure statement, acknowledging that th Yes, provided he discloses the commission in writing to the client