1.Which of the following is true about accounts receivable confirmations?

a. They represent independent evidence and thus there will never be a problem with them.

b. There is a new standard that allows only the use of electronic a/r confirmations.

c. Only hard copy a/r confirmations are currently allowed.

d. confirmations are not effective if the customers are related parties.

2. Which of the following is not true regarding the PCAOBs proposal for quality control standards

1. The Public Company Accounting Oversight Board has issued a concept release proposing a new approach to changing its quality control standards.
2. The changes would represent the biggest changes since the PCAOB adopted the current quality control standards in 2003
3. The auditing environment has changed a great deal since the Enron/Worldcom scandals due to technology
4. The PCAOB has decided that quality control is an accounting firm specific issue and they are no longer going to be involved in it.