Johannes Mullauer, Wirtschaftsprufer, who has been engaged to audit the financial statements of Ais, GmbH, is about to start obtaining an understanding of the internal control structure and is aware of the inherent limitations that should be considered.

Required:

A. What are the reasons for establishing objectives of internal control?

B. What are the reasonable assurances that are intended to be provided by the accounting internal control structure? 

C. When considering the potential effectiveness of any internal control structure, what are the inherent limitations that should be recognized?