The following statements are made by your fellow candidate audit trainee about inherent risks of an audit associated with the nature of audit procedures.

$1.$Management will always provide the auditor with complete information relating to the financial statements.

$2.$When the auditor performs procedures related to the completeness of information they can be $100\%$ certain that all information has been recorded or conveyed to them.

$3.$Fraud$,$ including collusion and falsification of documents, may be so sophisticated and expertly hidden that conventional audit procedures will be ineffective in detecting misstatement.

$4.$An audit is not an official investigation into wrongdoing, and accordingly the auditor does not have the legal powers which may be necessary to pursue certain evidence.

$5.$Audit procedures for material items are conducted on $100\%$ of the account balance so the risk that material misstatement will go undetected is reduced.

$$

Which of these statements are$$incorrect$$regarding inherent risks of an audit associated with the nature of audit procedures?

a$.$

None of the statements are incorrect.

b$.$

$1,2$ and $3$

c$.$

$1,2$ and $5$

d$.$

$3$ and $4$