ExpertMedium1 markMultiple Choice
CPA · Question 19 · Area 2: Risk Assessment
In the context of the COSO Internal Control framework, which of the following best describes the 'Monitoring' component?
In the context of the COSO Internal Control framework, which of the following best describes the 'Monitoring' component?
Answer options:
A.
The policies and procedures that help ensure management directives are carried out.
B.
The process of identifying and analyzing risks to the achievement of objectives.
C.
The tone at the top that sets the foundation for all other components.
D.
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
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.
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