1. The confidentiality agreement Barry Minkow demanded from Ernst & Whinneys Larry Gray (Exhibit 3 on page 125) could be construed as:
   1. A scope limitation.
   2. Cause for an explanatory paragraph in an unqualified opinion.
   3. Highly routine part of protecting a clients trade secrets.
   4. Unnecessary as the professional code of conduct conveys the expectation of privileged communications.

2. Friehling & Horowitz (the Madoff Securities audit firm) were :
   1. Competent to audit Madoff securities despite their size as they were experienced.
   2. Understaffed and not sufficiently competent to agree to an engagement of a client the size and complexity of Madoff Securities.
   3. Could do a thorough audit with only one or two professional staffers as they used testing and generalized audit software.
   4. Competent to take on the audit of Madoff Securities as the y were CPAs.

3. Friehling & Horowitz violated which of the AICPAs old ten auditing standards?
   1. The General standards
   2. The Fieldwork standards
   3. The Reporting standards
   4. All of the above.

THESE WERE GIVEN TO US TO ANSWER FOR STUDY SHEET