Which statement is FALSE?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 11MC: Which of the following is true about the Sarbanes-Oxley Act? A. It was passed to ensure that...
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Which statement is FALSE?

1)Under SEC rules, we cannot have a subcontracting relationship with an audit client and/or affiliate.

2)Under the SEC rules, a third-party resource relationship with an audit client is usually prohibited because it creates a mutuality of interest between KPMG and the audit client.

3)Under the SEC rules, an alliance relationship may be possible, subject to materiality and significance considerations.

4)Under the IESBA rules, a subcontracting relationship might be possible, subject to materiality and significance considerations. 

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