1) AAA accounting recently finished auditing Lostumber Corporation's internal control over financial reporting. AAA found a number of material weaknesses in the company's internal control structure. What report should AAA issue with regards to internal control over financial reporting?

a- A qualified report

b- A disclaimer on opinion

c- An unqualified report

d- An adverse report

2) In auditing a company with large accounts receivable balances, a reasonable audit strategy for auditing accounts receivable and related accounts (e.g allowance for doubtful accounts) is to set tolerable misstatement at a high level because it is very time consuming to ensure such large balance are accurate.

True or False