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CS Professional · Internal and Forensic Audit · Internal Controls

Sunrise Textiles Ltd of Surat is reviewing its internal control structure using the five-component model described in SA 315 (which parallels the COSO framework). Which of the following is one of the five components listed in SA 315?

Monitoring of controls is one of the five components of internal control in SA 315, along with the control environment, risk assessment process, information system and communication, and control activities. The other options are not named components of the framework.

  1. AMonitoring of controlsCorrect
  2. BStatutory registers maintenance
  3. CBudgetary variance analysis
  4. DSegregation of shareholders

Explanation

SA 315 divides internal control into the control environment, the entity's risk assessment process, the information system and communication, control activities, and monitoring of controls. The other options are not listed as components, though they may be activities within a component.

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