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Flashcards in Processes of Monitoring Internal Control Deck (6)
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1
Q

Define “ongoing monitoring”

A

Activities to monitor the effectiveness of IC in the ordinary course of operations.

2
Q

What are the 3 elements of establishing a foundation for control?

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

Define an internal control deficiency

A

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.

4
Q

Define “control baseline”

A

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.

5
Q

List the 4 activities that comprise the Design and Execution of Control Monitoring

A
  1. Prioritize risks
  2. Identify controls
  3. Identify persuasive info about controls
  4. Implement monitoring procedures
6
Q

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

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