2. Consider the following statements: I. Walkthroughs and inquiries can be used to obtain an understanding of an entity's internal controls. Il. Internal control is a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance. a. I is true; Il is true b. I is true; Il is false c. I is false; Il is true d. I is false; Il is false 3. Consider the following statements: I. A material weakness in internal controls is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement in the company's annual or interim financial statements will not be prevented or detected and corrected on a timely basis. II. A transaction (audit) trail includes the documents and records that allow an auditor to trace a transaction from its origination through to its final disposition, or vice versa. a. I is true; Il is true b. I is true; Il is false c. I is false; Il is true d. I is false; Il is false