Question

Identify and briefly describe the two principles that should govern the monitoring function.

Answer 1

The Information and Communication component and the Monitoring Activities component are the last two components of the Framework. The Information and Communication component has three (3) while the Monitoring Activities has two (2) principles.

1. The organization obtains or generates and uses relevant, quality information to support the functioning of internal control.
2. The organization internally communicates information, including objectives and responsibilities for internal control, necessary to support the functioning of internal control.
3. The organization communicates with external parties regarding matters affecting the functioning of internal control.
4. The organization selects, develops, and performs ongoing and or separate evaluations to ascertain whether the components of internal control are present and functioning.
5. The organization evaluates and communicates internal control deficiencies in a timely manner to those parties responsible for taking corrective action, including senior management and the board of directors, as appropriate.