【導(dǎo)讀】10PAPER,meetmissions,goals,andobjectivesand,indoingso,supportperformance-. eachcontrol.

　　

【正文】 r determining low, medium, and high risks,? An acceptable level of risk under varying circumstances.b) Assess the quantity and quality of risks. Costs refer to the financial measure of resources consumed in acplishing a specified purpose。 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。 mitment to achieving strong control. This mitment is met through good organizational structure, personnel practices, munication, protection and use of resources. Systematic accountability, monitoring and systems of reporting and general leadership are required. One important way to prove management39。s support for good internal control is emphasizing the value of internal auditing. The manager also proves mitment by showing responsiveness to information developed through internal audits.SSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 12 The organization of an agency provides its management with the overall framework for planning, directing, and controlling its operations. Good internal control requires clear separation of duties. General leadership is critical to maintaining a positive and supportive attitude toward internal control. Adequate supervision, training, and motivation of employees in the area of internal control are important.Competent personnel: Managers and employees are to have personal and professional integrity. They are to be qualified to perform their assigned duties, as well as to understand the importance of ensuring sound internal controls. Personal and professional integrity must be shown. Many elements influence the integrity of managers and their staff. For example, personnel should periodically be reminded of their obligations under an operative code of conduct. Hiring and staffing decisions should include proof of education and experience. Once on the job, the individual should be given formal and onthejob training. Managers who have a good understanding of internal control are vital to effective control systems. Counseling and performance appraisals are also important. Part of the appraisal should be based on determining that they support implementation and maintenance of internal control.Control objectives: Each internal control has some objectives. Internal control objectives are to be identified or developed for each agency activity. They are to be logical, applicable, and reasonably plete. Internal control objectives should be tailored to an agency39。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。s organization and division of responsibilities. Financial cycles cover the traditional control areas concerned with revenues and expenditures, assets, and financial information. Figure 1 show some of these cycles.SSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 13 The financial Reporting Cycle enpasses the yearend accounting procedures and financial statement preparation. The cycle includes the recording of accruals and pilation of financial statement information. The Budget Reporting Cycle includes the establishment, revision, reporting and administration of the budgets as directed by the entity and Office of State Budget and Management. The Cash Receipts Cycle involves the preparation of receipts, deposits, and special reports for the funds received by an entity. The cycle could also include petty cash transactions. An entity may have more than one receipting area. If the processes are different indicate the variations on the internal control questionnaire. The Accounts Receivable Cycle includes the recording, collection, billing and aging of accounts receivable. An entity may have several accounts receivable systems. A separate SSRN, USA 2020 A Clear Look at Internal Control: Theory and ConceptsTop 10 Paper, First Quarterly 2020 14internal control questionnaire should be pleted for each accounts receivable cycle. The Purchasing/Accounts Payable Cycle records the purchase and payments for goods and services for all nonsalary expense transactions. The cycle includes the recording of obligations, issuance of checks and the liquidation of encumbrances. There could be several different accounts payable systems within an entity. A separate internal control questionnaire should be pleted for each separate accounts payable and purchasing system. For example, a university may have university purchasing/accounts payable and stores purc