Please somebody give me the answers of these two questions with brief explanation.
Thank you.
1. Dorothy (an audit manager) has been asked by her firm to serve on the audit of Tandem Electric, Inc. Dorothy is concerned that Joanne, a friend from her college days, is on the internal audit staff of Tandem Electric. Dorothy believes she would be able to provide audit services to this client in an objective manner. Which of the following statements best describes how the Conceptual Framework for AICPA Independence Standards should be applied in this situation?
A. Dorothy should refuse to provide services to Tandem Electric since no safeguards would be effective in mitigating the threat(s) to her independence.
B. Dorothy should not participate in the audit of Tandem Electric before obtaining a written waiver from her firm's general counsel.
C. Dorothy should consider the threat to an acceptable level.
D. Dorothy should document her assessment of independence, which should include a sworn statement from Joanne.
2.Which of the following statements best describes the SEC rules relating to bookkeeping services?
A. Certain bookkeeping services are permitted, as long as the individuals performing these services are different from the individuals performing the audit.
B. Certain bookkeeping services are permitted, provided the fees from these services are insignificant relative to the audit fees.
C. Certain bookkeeping services are permitted, as long as the client agrees in writing to accept responsibility for the adequacy of these services.
D. An accountatn generally cannot provide bookkeeping services to an SEC Audit Client.