Which statement is FALSE?

1.Under the SEC and IESBA rules, supplier vendor relationships are never permitted if the product will be used by a KPMG client.

2,Under the IESBA rules, supplier vendor relationships might be possible, subject to materiality and significance considerations.

3.Under the SEC rules, a supplier vendor relationship is permissible, subject to materiality and as long as KPMG is acting as a consumer in the ordinary course of business.

4.Internal or external use of a product is one consideration for independence related to supplier vendor relationships.