The question is under auditing and assurance Malaysia.

ISA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment requires the auditor to obtain an understanding of the entity and its environment including its internal control which is sufficient to assess the risks of material misstatements whether due to fraud or error. Required: a) Identify the FIVE (5) components of internal control. (5 marks) b) Explain five (5) matters that the auditor may consider when developing an understanding of the entity and its environment. (10 marks) c) Explain five (5) inherent limitations of internal control. (10 mark)