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CS Professional · Internal and Forensic Audit · Internal Controls

At Kaveri Pharma Ltd, the CFO reviews the monthly exception reports and supervisors check daily stock reconciliations as part of routine work. Under the SA 315 description of monitoring of controls, these activities are best described as:

These are ongoing monitoring activities. SA 315 states that ongoing monitoring is built into an entity's normal recurring activities and includes regular management and supervisory activities, such as routine review of exception reports and reconciliations, as opposed to periodic separate evaluations.

  1. ASeparate evaluations carried out by an outside team
  2. BOngoing monitoring activities built into recurring operationsCorrect
  3. CControl environment tone-setting only
  4. DRisk assessment of new product lines

Explanation

SA 315 says management accomplishes monitoring through ongoing activities, separate evaluations, or both. Ongoing monitoring is built into normal recurring activities and includes regular management and supervisory activities, which matches the CFO and supervisor reviews. Separate evaluations are periodic and distinct from routine work.

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