Processes 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

Define “ongoing monitoring.”

Answer 2

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

Question 3

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

Answer 3

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

Question 4

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

Answer 4

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

Question 5

Define “internal control deficiency.”

Answer 5

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 6

Define “control baseline.”

Answer 6

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