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CS Professional · Internal and Forensic Audit · Internal Controls

During a review at Narmada Cements Ltd, the internal auditor finds that a control deficiency identified last quarter was reported and has since been corrected by management. Under the SA 315 description of monitoring of controls, which feature does this illustrate?

This illustrates taking necessary remedial actions. SA 315 describes monitoring of controls as assessing the effectiveness of internal control performance over time on a timely basis and then taking necessary remedial actions, which is what correcting the reported deficiency represents.

  1. ATaking necessary remedial actions after assessing control effectivenessCorrect
  2. BEliminating the need for a control environment
  3. CReplacing the information system
  4. DAvoiding any assessment over time

Explanation

SA 315 describes monitoring as a process to assess the effectiveness of internal control performance over time, involving assessment on a timely basis and taking necessary remedial actions. Correcting a reported deficiency is the remedial action element. The other options contradict the described purpose.

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