To properly assess the internal controls that are in place at BovarCompany, you have found that there are three major objectives that anentity should follow in designing an effective internal control system.They are as follows:Reliability of financial reportingEfficiency and effectiveness of operationsCompliance with laws and regulations In 3–4 paragraphs, complete the following:Discuss the meaning of each of the following major objectives:Reliability of financial reportingEfficiency and effectiveness of operationsCompliance with laws and regulations Discuss how they might be satisfied at Bovar Company.Prepare an unadjusted misstatement audit schedule with acomment on your judgment of the audit findings based on the followingaudit results for Bovar. Bovar has the following misstatements (anyamount more than 5% of current assets, total assets, and income beforetaxes):Understated allowance for uncollectible accounts: $95,000 estimated based on analytical proceduresAccounts receivable or sales cutoff misstatements:$60,000 estimated population misstatements based on the sample,including sampling error ($60,000 accounts receivables or sales were notincluded in the cutoff reporting period.)Difference between physical inventory and book figures: $120,000 actual population misstatements. (The physical inventory is higher than the book figures by $120,000.)Unrecorded liabilities: $285,000 estimated population misstatements based on the sample, including sampling errorRepairs or expense items that should have been capitalized: $90,000 estimated based on analytical procedures