Process of Monitoring Internal Control

Question 1

List the four activities that comprise the design and execution of control monitoring.

Answer 1

1. Prioritize risks 2. Identify controls 3. Identify persuasive information about controls 4. Implement monitoring procedures

Question 2

Name the three activities that comprise assessing and reporting on control monitoring.

Answer 2

1. Prioritize findings 2. Report results as appropriate 3. Follow put to implement corrective actions

Question 3

Define an internal control deficiency.

Answer 3

A condition requiring attention. May represent a perceived, potential, or real shortcoming, or an opportunity to strengthen the system to increase the likelihood of achieving objectives.

Question 4

Define “control baseline.”

Answer 4

A starting point for control monitoring. A control assessment that provides sufficient, persuasive information to support a conclusion about control effectiveness, either across the entire organization or in a given area.

Question 5

What are the three elements of establishing a foundation for control?

Answer 5

1. The tone at the top 2. Organizational structure 3. Baseline understanding of control effectiveness.

Question 6

Define “ongoing monitoring.”

Answer 6

Activities to monitor the effectiveness of internal control in the ordinary course of operations.