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Section 7.19 of "Government Auditing Standards — July 2007 Revision" (Yellow Book) <br />discusses the principal types of internal control objectives, in pertinent part, as follows: <br />,,a. Effectiveness and efficiency of program operations: Controls over program <br />operations include policies and procedures that the audited entity has <br />implemented to provide reasonable assurance that a program meets its objectives, <br />while considering cost - effectiveness and efficiency...." <br />"b. Relevance and reliability of information: Controls over the relevance and <br />reliability of information include policies, procedures, and practices that officials <br />of the audited entity have implemented to provide themselves reasonable <br />assurance that operational and financial information they use for decision making <br />and reporting externally is relevant and reliable and fairly disclosed in reports...." <br />"c. Compliance with applicable laws and regulations and provisions of contracts <br />or grant agreements: Controls over compliance include policies and procedures <br />that the audited entity has implemented to provide reasonable assurance that <br />program implementation is in accordance with laws, regulations, and provisions <br />of contracts or grant agreements...." <br />A unique challenge in governmental units is a lack of administrative continuity due to <br />changes in elected and appointed officials that increases the need for effective internal <br />controls. Therefore, it was necessary for the auditors to include a determination of the <br />existence, sufficiency and effectiveness of internal controls significant to the audit <br />objectives set forth above and the audited entity's ability to meet its mission, goals and <br />objectives. <br />31 <br />