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3-29 Independence

The Rocky Hill Corporation was formed on 10.01.20XX, and its fiscal year will end on 09.30.20XX, You audited the corporation's opening balance sheet and rendered an unqualified opinion on it. A month after rendering tour report, you are offered the position of secretary of the company because of the need for a complete set of officers and for convenience in signing various documents. You will have no financial interest in the company through stock ownership or otherwise, will receive no salary, will not keep the books, and will not have any influence on its financial matters other than occasional advice on income tax matters and similar advice normally given a client by a CPA.



  1. Assume that you accept the offer but plan to resign the position prior to confucting your annual audit with the intention of again assuming the office after rendering an opinon on the statements. Can you render an independent opinion on the financial statements? Explain.


    2. Assume that you accept the offer on a temp basis until the corporation has             fotten under way and can employ a secretary, In any event, you would                 permanently resign the position before conducting your annual audit. Can you         render an independent opinion on the financial statements? Explain

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