Two audit staff associates, Latisha and Tonya, are discussing their understanding of how internal control works. Latisha and Tonya are both relatively new to the world of auditing, and are discussing the different types of internal control systems they have seen on their audits. Which of the following statements is correct regarding a client's system of internal controls?

Although systems will vary between organizations, an effective and well$-$designed system should offer reasonable assurance that material misstatements in the financial statements have been prevented and$/$or detected.

The general rule is that the more money a client spends on their system of internal control, the more likely it is to eliminate misstatements from the financial statements.

All of these answer choices are correct.