Ross & Ross, CPAS, performed an audit of the financial statements of Ruby Manufacturing for the year ended December 31, 20X7 and issued their report on March 2, 20X8. As of April 1, 20X8, due to various circumstances, Ross & Ross was no longer independent from Ruby Manufacturing and did not perform any further audits of the company's financial statements. On June 15, 20X8, Ross & Ross was asked to re-sign the audited financial statements of Ruby Manufacturing for the year ended December 31, 20X7. Which of the following is TRUE regarding this situation? Since Ross & Ross, CPAS are no longer independent of Ruby Manufacturing, they may not re-sign the audit report. If post audit work was performed after March 2, 20X8, Ross & Ross, CPAS would not be able to re-sign the report. If post audit work was performed from April 1, 20X8 until June 15, 20X8, Ross & Ross, CPAs would not be able to re-sign the report. Since Ross & Ross, CPAS was independent at the time the report was issued, there is no restriction on their ability to re-sign the report even if their independence later becomes impaired.

Ross & Ross, CPAS, performed an audit of the financial statements of Ruby Manufacturing for the year ended December 31, 20X7 and issued their report on March 2, 20X8. As of April 1, 20X8, due to various circumstances, Ross & Ross was no longer independent from Ruby Manufacturing and did not perform any further audits of the company's financial statements. On June 15, 20X8, Ross & Ross was asked to re-sign the audited financial statements of Ruby Manufacturing for the year ended December 31, 20X7. Which of the following is TRUE regarding this situation? Since Ross & Ross, CPAS are no longer independent of Ruby Manufacturing, they may not re-sign the audit report. If post audit work was performed after March 2, 20X8, Ross & Ross, CPAS would not be able to re-sign the report. If post audit work was performed from April 1, 20X8 until June 15, 20X8, Ross & Ross, CPAs would not be able to re-sign the report. Since Ross & Ross, CPAS was independent at the time the report was issued, there is no restriction on their ability to re-sign the report even if their independence later becomes impaired.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Ross & Ross, CPAS, performed an audit of the financial statements of Ruby
Manufacturing for the year ended December 31, 20X7 and issued their report on
March 2, 20X8. As of April 1, 20X8, due to various circumstances, Ross & Ross was no
longer independent from Ruby Manufacturing and did not perform any further audits
of the company's financial statements. On June 15, 20X8, Ross & Ross was asked to
re-sign the audited financial statements of Ruby Manufacturing for the year ended
December 31, 20x7.
Which of the following is TRUE regarding this situation?
Since Ross & Ross, CPAS are no longer independent of Ruby Manufacturing, they may not re-sign the audit
report.
If post audit work was performed after March 2, 20X8, Ross & Ross, CPAs would not be able to re-sign the
report.
If post audit work was performed from April 1, 20X8 until June 15, 20X8, Ross & Ross, CPAs would not be able
to re-sign the report.
Since Ross & Ross, CPAS was independent at the time the report was issued, there is no restriction on their
ability to re-sign the report even if their independence later becomes impaired.

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