Maddie and Howard, two audit managers assigned to the audit of Wick Enterprises are discussing internal control with a new staff associate, Kendra. Kendra is curious as to how firms attempt to mitigate risks to the greatest extent possible. Which of the following represents Maddie and Howard's best response to this question?

O Auditors that are auditing firms that have implemented strong controls usually increase control risk to compensate for this.

O Firms implement control activities which are designed to eliminate risk and ensure that there are no material misstatements

in the financial statements.

$$ Firms typically implement control activities which are designed to help mitigate risk and ultimately ensure the firm's goals and objectives are achieved.

O Firms understand that risk is inherent in most industries, and that there is very little they can do to mitigate it$.$