50. In a school district, the overall system of control is adequate when reasonable assurance is provided that.

A comprehensive planning is undertaken for each year and the school adopts plans and budgets for each such year.

B . expenditures are being made in accordance with the budget and the applicable statutes.

c. periodic reviews are undertaken to ascertain that the system is functioning as designed.

D . the district’s objectives and goals are being met efficiently and economically.

D yes. “the purpose of the review for adequacy of the system of internal control is to ascertain whether the system established provides reasonable assurance that the organization’s objectives and goals will be met efficiently and economically” (standard 300). “reasonable assurance is provided when cost-effective action are taken to restrict deviations to a tolerable level. This implies, for example, that material errors and improper or illegal acts will be prevented or detected and corrected within a timely period by employees in the normal course of performing their assigned duties. The cost-benefit relationship is considered by management during the design of systems. The potential loss associated with any exposure or risk is weighed against the cost to control it. Efficient performance accomplishes objectives and goals in an accurate and timely fashion with minimal use of resources. Economical performance accomplishes objectives and goals at a cost commensurate with the task. The term efficient incorporates the concept of economical performance”( SIAS 1).

A no. control results from proper organizing and directing as well as planning by management

B whether the control structure provides reasonable assurance that the system is functioning as intended, for example, by complying with plans (budgets) and laws, is an issue of effectiveness, not adequacy.

C no these period reviews also relate to the effectiveness of the system.