A component of COSO's internal control system concerns the process that provides feedback on the effectiveness of the other components of internal control.This component is called:
A)information and communication.
B)monitoring.
C)control activities.
D)risk assessment.

Question

Quizplus · Accepted Answer

Monitoring is the component of COSO's internal control system that enables organizations to assess the effectiveness of their other internal control components. It involves ongoing monitoring and separate evaluations that ascertain whether the other components of internal control are efficient and effective in achieving set objectives. The monitoring component is an essential aspect of internal control because it helps organizations to identify deficiencies or gaps that may exist in their internal controls, and consequently take corrective measures to improve their operation. Thus, monitoring plays a critical role in ensuring that the other internal control components are appropriately designed and functioning as intended.

A Component of COSO's Internal Control System Concerns the Process