Question

Terry Industries engages Rose & Co., CPAs, to prepare its annual financial statements and tax returns. As soon as Rose completes the services, Terry pays for the services and terminates the relationship and asks the firm to provide all records and work product. What records or other information should Rose provide to Terry under the "Records Requests" interpretation?

a.Whatever records it wishes to provide.
b.Any and all records, working papers, and work product.
c.All working papers and work product.
d.Records that were provided to Rose and any work product.

Answer 1

Rose & Co., CPAs must provide Terry Industries with records provided to Rose and any work product, in accordance with the AICPA 'Records Requests' interpretation.

Step-by-step explanation:

Under the "Records Requests" interpretation provided by the American Institute of Certified Public Accountants (AICPA), Rose & Co., CPAs are generally required to provide certain records to Terry Industries after completing the engagement. The correct answer is d. Records that were provided to Rose and any work product. This includes documents that were provided by Terry Industries to Rose & Co. for the purpose of their work, as well as any work product that was created by the CPA firm during the engagement. It does not necessarily include internal firm working papers or other documents that are part of the firm's internal quality control procedures.