1) Which of the following analytical procedures would not provide information on a potential misstatement( either understatement or overstatement) of the allowance for uncollectible accounts?

a- compare allowance for uncollectible accounts as a percentage of accounts receivable with previous years

b- compare aging categories as a percentage of accounts receivable with previous years

c- compare current year gross margin percentage with previous year gross margin

d- compare number of days accounts receivable are outstanding with previous years

2) An appropriate response to finding significant exceptions in tests of controls is as follows:

a- decrease reliance on controls and adjust substantive test accordingly

b- Increase tolerable misstatement( and overall materiality) for relevant accounts in the cycle where the controls were found lacking

c- None of the other responses is correct

d- decrease your reliance on substantive testing of accounts in the cycle where the controls were found lacking