Ron Ward, a member, is the sole owner of Ron Ward, CPA. Ward has one bookkeeper and one accounting assistant and neither is a CPA. Ron Ward, CPA has prepared compiled financial statements for Packem Manufacturing Co. for the past four years. Joe Packem, the owner of Packem Manufacturing, asked Ward if he knows of anybody who wants to buy some equipment from the company. Joe then engages the firm to help him find a buyer for this equipment. As part of the agreement, Packem Manufacturing will pay Ron Ward, CPA a commission of 5% of the selling price of the equipment if the firm finds a buyer and the sale is completed. At the present time, no buyer has been found and no sale has been completed. Which of the following is TRUE regarding the performance of both the compilation and equipment selling engagements at the same time? Since the receipt of the commission is contingent upon the completion of a sale that has not yet been complet- ed, there is no conflict between the two engagements and no further action must be taken by Ron Ward, CPA. Ron Ward, CPA cannot perform both of these services at the same time under any circumstances. If Ron Ward, CPA expects or reasonably expects that a third party will use the compiled financial statements, the report must disclose the firm's lack of independence. None of these statements are true. Question 35

Ron Ward, a member, is the sole owner of Ron Ward, CPA. Ward has one bookkeeper and one accounting assistant and neither is a CPA. Ron Ward, CPA has prepared compiled financial statements for Packem Manufacturing Co. for the past four years. Joe Packem, the owner of Packem Manufacturing, asked Ward if he knows of anybody who wants to buy some equipment from the company. Joe then engages the firm to help him find a buyer for this equipment. As part of the agreement, Packem Manufacturing will pay Ron Ward, CPA a commission of 5% of the selling price of the equipment if the firm finds a buyer and the sale is completed. At the present time, no buyer has been found and no sale has been completed. Which of the following is TRUE regarding the performance of both the compilation and equipment selling engagements at the same time? Since the recoipt of the commission is contingent upon the completion of a sale that has not yet been completed, there is no conflict between the two engagements and no further action must be taken by Ron Ward, CPA. Ron Ward, CPA cannot perform both of these services at the same time under any circumstances. If Ron Ward, CPA expects or reasonably expects that a third party will use the compiled financial statements. the report must disclose the firm's lack of independence. None of these statements are true