Monitoring of controls
Monitoring of controls involves ongoing or separate evaluations of whether internal control is operating as intended and appropriate action to address deficiencies. The auditor considers the entity’s monitoring activities when understanding the system. Monitoring may involve management review or internal audit, and can identify controls that are no longer operating properly. The auditor considers the sources of information used in monitoring and whether deficiencies are investigated and remediated.
Worked example
A manager reviews monthly exception reports and follows up unresolved access-control failures.
Common mistake
Monitoring is distinct from performing the original transaction control; a review must be evidenced and acted upon.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |