QUESTION 3 (CLO 3) An auditor is required to obtain sufficient understanding of each component of an entitys internal control system to plan the audit of the entitys financial statements and to assess control risk for the assertions embodied in the account balance, transaction class, and disclosure components of the financial statements. Required: Using the information above: a) DEFINE internal control. (7 marks) b) EXPLAIN the purpose that should an auditors understanding of the internal control components be used in planning an audit. (15 marks) c) DESCRIBE, may an auditor set control risk at the maximum level for one or more assertions embodied in an account balance. (9 marks) d) DISCUSS an auditors documentation requirements concerning an entitys internal control system and the assessed level of control risk.