In the context of the COSO Internal Control framework, which of the following best describes the 'Monitoring' component?

Answer options:

The policies and procedures that help ensure management directives are carried out.

The process of identifying and analyzing risks to the achievement of objectives.

The tone at the top that sets the foundation for all other components.

The process of assessing the quality of internal control performance over time.

How to approach this question

Match the definition to the 5 COSO components. Monitoring = Checking if it works.

Full Answer

D.The process of assessing the quality of internal control performance over time.✓ Correct

The process of assessing the quality of internal control performance over time.

Monitoring activities are the processes used to assess the quality of internal control performance over time. It includes internal audit functions and management reviews.

Common mistakes

Confusing Monitoring with Control Activities.

Question 18 All questions Question 20

Practice the full CPA AUD Practice Exam

78 questions · hints · full answers · grading

More questions from this exam

Q01A CPA firm is auditing a large public company. The audit partner's spouse has just been promoted ...Hard Q02During the acceptance phase of a new audit engagement for a private company, the successor audito...Hard Q03A CPA firm is designing its system of quality control. Which of the following policies would most...Medium Q04An auditor is establishing an understanding with a client regarding the services to be performed ...Medium Q05Under the AICPA Code of Professional Conduct, which of the following fee arrangements is prohibit...Medium

View all 78 questions →