Flashcards in Processes of Monitoring Internal Control Deck (6):
Define "ongoing monitoring"
Activities to monitor the effectiveness of IC in the ordinary course of operations.
What are the 3 elements of establishing a foundation for control?
1. The tone at the top
2. Organizational structure
3. Baseline understanding of control effectiveness
Define an internal control deficiency
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.
Define "control baseline"
A starting point for control monitoring. A control assessment that provides sufficient, persuasive info to support a conclusion about control effectiveness, either across the entire organization or in a given area.
List the 4 activities that comprise the Design and Execution of Control Monitoring
1. Prioritize risks
2. Identify controls
3. Identify persuasive info about controls
4. Implement monitoring procedures