Internal controls are essential for the reliability of financial reporting, the effectiveness and efficiency of operations, and compliance withapplicable laws and regulations.

The following statements relate to an entitys system of internal control:

1. A strong control environment reduces the likelihood of material misstatements. 2. Inherent limitations of a system of internal control include the tendency for internal controls to be directed at non-routine rather thanroutine transactions. 3. The components of a system of internal control are the control environment, the entitys risk assessment process, the process to monitorthe system of internal control; the information system and communication and control activities. 4. The entitys risk assessment process component includes the communication and enforcement of integrity and ethical values within theentity. 5. Management is responsible for the design, implementation and maintenance of a system of internal controls.

Choose the option that indicates the true statements with respect to an entitys system of internal control in terms of the InternationalStandards on Auditing (ISAs)?

a.1, 3 and 5

b.1, 2, 3 and 5

c.1, 4 and 5

d.2, 3 and 5