【正文】 costs can also represent a lost opportunity, a decline in service or low employee morale. A benefit is measured by the degree that the risk of failing to achieve a stated objective is reduced. Examples include increasing the chance of detecting fraud, waste, abuse or error, preventing an improper activity, or increasing regulatory pliance.Supportive attitude: This standard requires that management and employees maintain and show a supportive attitude toward internal control at all times. Managers and employees are to be attentive to internal control matters. They need to take steps to promote the effectiveness of the control. Attitude affects the quality of performance and the quality of internal control. A positive and supportive attitude is started and fostered by management. It is ensured when internal control is consistently a management priority. Positive attitudes are fostered by managers39。s objectives. Control activities, whether automated or manual, have various objectives and are applied at various organizational and functional levels. Generally, control activities that may be relevant to an audit may be categorized as policies and procedures that pertain to the following:? Performance reviews? Information processing? Physical controls? Segregation of duties The auditor should obtain an understanding of those control activities relevant to planning the audit. As the auditor obtains an understanding of the other ponents, he or she is also likely to obtain knowledge about some control activities. For example, in obtaining an understanding of the documents, records, and processing steps in the financial reporting information system that pertain to cash, the auditor is likely to bee aware of whether bank accounts are reconciled. The auditor should consider the knowledge about the presence or absence of control activities obtained from the understanding of the other ponents in determining whether it is necessary to devote additional attention to obtaining an understanding of control activities to plan the audit. Ordinarily, audit planning does not require an understanding of the control activities related to each account balance, transaction class, and disclosure ponent in the financial statements or to every assertion relevant to them.Note: For purposes of evaluating the effectiveness of internal control over financial reporting, the auditor39。s and the board of directors39。s review of purchases for propriety and validity prior to approval prevents inappropriate expenditures.Detective controls are designed to identify an error or irregularity after it has occurred. ? An exception report detects and lists incorrect or invalid entries or transactions.? A parison of validated Cash Receipt Vouchers to monthly financial statements will detect deposits posted to erroneous accounts.? The manager39。s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: a) Effectiveness and efficiency of operations。s resources, both physical (., machinery and property) and intangible (., reputation or intellectual property such as trademarks). At the organizational level, internal control objectives relate to the reliability of financial reporting, timely feedback on the achievement of operational or strategic goals, and pliance with laws and regulations. At the specific transaction level, internal control refers to the actions taken to achieve a specific objective (., how to ensure the organization39。 it includes internal cheek, internal audit and other forms of controls. COSO describe Internal Control as follow. Internal controls are the methods employed to help ensure the achievement of an objective. In accounting and organizational theory, Internal control is defined as a process effected by an organization39。s objectives. Effective internal control helps an organization achieve its objectives。 review and approval authorizations。 Information and munication s risk assessment differs from the auditor39。 information about an organization39。s operations. We can demonstrate all of any agency operations as agency cycle that can be grouped into one or more groups. Cycles make up all specific activities (such as identifying, classifying, recording, and reporting information) required to process a transaction or event. Cycles should be patible with an agency39。 access security。s risk assessment for financial reporting purposes is its identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly presented in conformity with generally accepted accounting principles. For example, risk assessment may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements. Risks relevant to reliable financial reporting also relate to specific events or transactions. Risks relevant to financial reporting include external and internal events and circumstances that may occur and adversely affect an entity39。 Risk assessment reconciliations。s board of directors, management and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following categories namely. Effectiveness and Efficiency of Operations Reliability of Financial Reporting Compliance with Applicable Laws and Regulations In AU Section 319 Consideration of Internal Control in a Financial Statement Audit internal control described as: Internal control is a process—effected by an entity’s board of directors, management, and other personnel—designed to provide reasonable assurance regarding the achievement of objectives in the following categories: (a) reliabi