when considering internal control an auditor should be aware of the concept of reaso 600337

When considering internal control, an auditor should be aware of the concept of reasonable assurance, which recognizes that

1. Internal control may be ineffective due to mistakes in judgment and personal carelessness.
2. Adequate safeguards over access to assets and records should permit an entity to maintain proper accountability.
3. Establishing and maintaining internal control is an important responsibility of management.
4. The cost of an entity’s internal control should not exceed the benefits expected to be derived.