Monitoring

[1] Ongoing evaluations, separate evaluations, or some combination of the two are used to ascertain whether each of the five components of internal control, including controls to effect the principles within each component, is present and functioning. Ongoing evaluations, built into business processes at different levels of the entity, provide timely information. Separate evaluations, conducted periodically, will vary in scope and frequency depending on assessment of risks, effectiveness of ongoing evaluations, and other management considerations. Findings are evaluated against criteria established by regulators, recognized standard-setting bodies or management and the board of directors, and deficiencies are communicated to management and the board of directors as appropriate.

1 Committee of Sponsoring Organizations of the Treadway Commission (COSO), Internal Control – Integrated Framework (Executive Summary, May 2013), pg. 5.

Principles

16. Selects, develop and conduct ongoing and/or separate evaluations

17. Evaluate and communicate deficiencies in a timely manner