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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


Name the 3 activities that comprise Assessing and Reporting on control monitoring:

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