Choice "B" is correct. Under Rule 501 of the Code of Conduct members may not commit any act that discredits the profession. Failure to return records to a client after the client makes a demand is a specifically listed as an act that would discredit the profession.
Choice "a" is incorrect because a contingent fee is permitted when representing a client in a request for a ruling by IRS. The determination of the result would be determined by the IRS, not the accountant.
Choice "d" is incorrect. Although an accountant may not reveal confidential client information to others without the client's permission, the rule does not prohibit a review of the accountant's practice in connection with a sale of the accountant's practice. The accountant is required to take appropriate precautions in such cases. A written confidentiality agreement would be an example of such a precaution.
Choice "c" is incorrect. Unusual circumstances may justify a departure from generally accepted accounting principles if compliance would cause the report to be misleading (e.g., new legislation or new forms of business transactions). The departure must be described and explained.