Is the first one correct ? Because they're looking for material misstatements and not just misstatements?

Internal control is extremely important to any organization with respect to its optimal functioning and operational/financial performance. Which of the following statements most accurately encapsulates a firm's system of internal control? A firm's system of internal control is designed to provide reasonable assurance that the financial statements are free of material misstatements. A firm's system of internal control is designed to provide reasonable assurance that the financial statements are free of misstatements. Internal control, when implemented properly, is designed by management and the internal audit function to provide absolute assurance of no misstatements in the financial statements. A client's system of internal control is designed to assist the external auditor in performing less substantive procedures, reducing the cost of the audit