Monitoring represents a company\'s processes to determine whether internal contr

Question

Monitoring represents a company's processes to determine whether internal control over financial reporting is operating efficiently. Ongoing monitoring processes are designed to identify control failures, often by identifying activities and outcomes that are out of the norm, unexpected or inconsistent with management's objectives.
Monitoring is very important because if management has developed monitoring controls, then those controls can be used to reduce the amount of independent testing of internal controls. In other words, once a company establishes that controls are effective, attention can be then turned to how well the company monitors the continuing functioning of those controls. Future assessments of internal controls can rely heavily on monitoring if management can demonstrate that such monitoring is robust and effective.

Explanation / Answer

check this ppt u may find what u need http://instructor.mstc.edu/instructor/tborchardt/Auditing%20%20Power%20Points/PPT_Ch5.pdf

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