COSO by Monitoring

Finally, since internal control is a dynamic process that has to be adapted continually to the risks and changes an entity faces, monitoring of the internal control system is essential in helping internal control remain aligned with changing objectives, environment, laws, resources, and risks. Internal control monitoring assesses the quality of performance over time and promptly resolves the findings of audits and other reviews. Corrective actions are a necessary complement to control activities in order to achieve objectives.

  1. Management should establish and operate a monitoring mechanism that monitors both internal and external activities that impact the control system and evaluate the results.
  2. Management should remediate identified internal control deficiencies on a timely basis.