[18] QUESTION THREE Despite the best intentions of the directors of a company to implement "fool proof" internal controls it is virtually impossible to do. From the auditor's perspective, internal control, no matter how effective, can provide an entity with only reasonable assurance about achieving the entity's financial reporting objectives. The reason is that internal systems do have inherent limitations. (6) Required: 3.1. Identify, with brief explanations, the inherent limitations of internal controls. 3.2. Give an example of each of the inherent limitations in the context of a sales/cash receipts system for a supermarket. (12)