When considering the internal control structure, an audifor should be oware of the concept of reasonable assurance, which recognizes that

Intemal control policies and procedures may be ineffective due to mistokes in fudement and personal carelessness.

Adequate safeguards over access to assets and records should permit an entify to maintoin proper accountability.

Establishing and maintaining the internal control structure is an important responsibifity of management.

The cost of an entity's internal control structure should not exceed the benefits expected to be derived.