Final answer:
The assessment of the quality of internal control by management is a crucial part of corporate governance, involving periodic review, risk assessments, internal audits, and making necessary adjustments to control processes to ensure the business operates effectively.
Step-by-step explanation:
The ongoing or periodic assessment of the quality of internal control by management is an essential part of corporate governance and is key to ensuring that a company operates effectively and within established regulations. This process involves the evaluation of a company's internal control system to ensure that financial reporting is reliable, that operations are effective and efficient, and that the business complies with applicable laws and regulations.
Management activities related to the assessment of internal control typically include risk assessment, reviewing and updating control measures, monitoring and testing control processes, and taking corrective actions when needed. These activities are all crucial in maintaining a robust internal control system. Management must endeavor to implement ongoing monitoring activities or separate evaluations to make sure the internal controls are functioning as intended.