Please give answer based on the marks allocated for the question.

{INF-51195.1 (a) Management is responsible in designing and maintaining the internal control of a company. However. an internal control system can only provide reasonable condence that all control objectives are achieved because of inherent limitations in any system. Explain these inherent limitations. {4 marks} (b) Provide your comments and justications on the appropriateness of the following statements given by a CPA. \"My job is only to determine whether the payroll records are fairly stated with accounting standards. not to nd whether they are following proper hiring and termination procedures. When I conduct an audit of the payroll cycle. [will slcip the the HR department and only check on the time cards, journal entries and payroll check to make sure that the salaries are accurate. I don't care whom they hire and whom they re, as long as the monthly salary is conect, according to the number of hours they work in that respective month." {6 marks} {c} The following are misstatements that have occuned in Techno Pro Sdn. Bhd. [TPL a retail company. For each misstatement, identify the type of control activities that were absent and suggest a control to prevent. i. A vendor invoice was paid even though the inventory was not received. The accounts payables software does not require an input of valid receiving report number before payment is released. ii. An account payable clerk processed payments to himself by adding a ctitious vendor address to the approved vendor master le. iii. TP has lost all their current years' records that was stored in the company's accounting system. iv. During the physical count of inventory, the counter miscounted the quantity of few items and accidentally wrote wrong descriptions. v. A salesman of TP sold the company's product at a price below cost because he did not know that the price had increased in the past few weeks. vi. Incorrect prices was used on sales invoices for billing shipments to customers because the wrong price was entered in the computer master le of prices. [[5 marks) (Total: 15 marks]