Choice "A" is correct. The Code of Professional Conduct provides that a CPA may not commit a discreditable act. Retaining a client's records after a demand for their return has been ruled to be a discreditable act.
Choice "b" is incorrect. Issuing a modified report explaining a failure to follow a governmental regulatory agency's standards when conducting an attest service for a client is not generally prohibited.
Choice "c" is incorrect. A CPA may reveal confidential client information to a state CPA society quality review team.
Choice "d" is incorrect. Contingent fees are prohibited when preparing a tax return, but not when representing a client in an examination by the IRS.
