Ramirez, a member, obtains Atlantic Medical as a new audit and tax client. Ramirez finds that the prior years tax returns have substantially understated taxable income. Because the management of Atlantic Medical refuses to file amended returns correcting these errors, Ramirez withdraws from the engagement. Atlantic Medical then hires Stern, another CPA. Stern calls Ramirez and asks why she withdrew from the engagement and if there is anything he should know about this new client. Which is Ramirez' best response to Stern?

Ramirez should tell Stern that she did not get along with clients management and so withdrew from the engagement.

Ramirez should suggest that Stern obtain, from Atlantic Medical management, permission for her to discuss all matters freely with Stern.

Ramirez should refuse to talk to Stern.

Ramirez should tell Stern about the understatement of taxable income.