Black and Ramey, CPAS is a one-office public accounting firm that obtained a new client, Hooper Mfg. Co, in January 20X3. The engagement letter with Hooper calls for Black and Ramey to issue a report on Hooper's financial statements for the 20X3 calendar year and prepare all of their 20X3 tax returns. The 20X3 financial statement, with the accountant's report, will be sent to several banks and Hooper's suppliers. Black and Ramey are also to review, during 20X3, Hooper's 20X2 customer billings to see if any additional amounts should be billed. Black and Ramey's fee for this portion of their work will be 40% of such additional amounts billed and collected. Which of the following is CORRECT? Black and Ramey, CPAs cannot issue any type of report on Hooper Mfg. Co.'s 20X3 financial statements. A compilation report, including the statement that Black and Ramey, CPAs are not independent of Hooper Mfg.Co., may be issued on the 20X3 financial statements. Since, in 20X3, Black and Ramey, CPAS will be reviewing the billings for 20X2, they may issue an audit, review or compilation report on the 20x3 financial statements. A review or compilation report may be issued on the 20X3 financial statements but not an audit report.