Question

Monitoring the internal control system can be best described as _____.

a. The concept of separating responsibilities for related operations
b. Implementing proofs and security measures
c. The process by which a company locates weaknesses and improves controls
d. Separating operations, custody of assets, and accounting

Answer 1

Monitoring the internal control system is the process of identifying and improving weak points in a company's controls and policies, typically involving regular audits and performance reviews.

Step-by-step explanation:

Monitoring the internal control system can be best described as c. The process by which a company locates weaknesses and improves controls. This continuous process involves regularly reviewing and assessing the effectiveness of an organization’s set of controls, policies, and procedures designed to ensure the integrity of financial reporting, compliance with laws and regulations, and the efficiency of operations. Examples of monitoring activities include periodic auditing, both internal and external, and the review of operational performance against established metrics and benchmarks.