Weinbrecht & Company, CPAs, has provided annual audit and tax advisory services to Posey Corporation for several years. Last year, Posey experienced severe cash flow problems and was unable to pay Weinbrecht in full, leaving a significant balance unpaid. Weinbrecht is ready to begin fieldwork for the upcoming audit. What options are available to Weinbrecht & Co. and Posey under the AICPA code?
A.) Weinbrecht may perform the audit as long as the unpaid fees relating to the prior year are paid in full before the current year report is issued.
B.) Posey may have another firm perform the fieldwork and Weinbrecht will review the other firm’s work papers and issue the report.
C.) Weinbrecht may set up a payment plan with Posey to settle the unpaid fees over the next two years.
D.) Posey may give Weinbrecht a note with a maturity date no later than one year after the date of the current year report.
The answer is Weinbrecht may perform the audit as long as the unpaid fees relating to theprior year are paid in full before the current year report is issued.
