Skip to content

CS Professional · Internal and Forensic Audit · Internal Controls

Under COSO, which activity is an example of ongoing monitoring rather than a separate evaluation?

Regular supervisory review of daily exception reports is ongoing monitoring because it is built into normal recurring activities. Annual consultant reviews, special audits and periodic workshops are separate evaluations, which occur at intervals and not as part of routine operations.

  1. AA once-a-year review of controls by an outside consultant
  2. BA special internal audit of treasury ordered after a loss
  3. CRegular supervisory review of daily exception reports by the finance controllerCorrect
  4. DA periodic self-assessment workshop conducted every two years

Explanation

Ongoing monitoring is built into normal recurring operations and includes regular management and supervisory activities, such as daily review of exception reports. The other options are discrete, periodic or special reviews, and so are separate evaluations. SA 315 describes monitoring similarly.

Did you get it right without looking?

One question tells you little. A timed set on Internal Controls shows your real accuracy, how long you take and where you lose marks.

Practise Internal ControlsFree diagnostic mock

More Internal Controls questions