Black and Ramsey CPA is a one officd public accounting firm that obtained a new client Hooper Mfg co , in Jan 20X3. The engagement letter with Hooper calls for Black and Ramsey to issue a report on Hooper's financial statement for 20X3 calender year and prepare all their 20X3 tax returns . The 20X3 financial statement with the accoontant's report will be sent to several banks and Hooper's suppliers . Black and Ramsey are also to review during 20X3 Hooper's customer billings to see if any additional amounts should be billed . Black and Ramsey fee for this portion of their work will be 40% of such additional billed and collected.

which of the following is correct

1. Black and Ramsey , CPAs cannot issue any type of Report on Hooper Mfg Co 20X3 financial statements

2. A compilaton Report, including the statement that Black and Ramsey are not independent of Hooper Mfg Co may be issued on the 20X3 financial statement

3. Since , in 20X3 , Black and Ramsey , CPA will be reviewing the billings for 20X2, they may issue an audit , review or complilation report on the 20X3 financial statements.

4. A review or complilation report may be issued on the 20X3 financial statements but not an audit report