Monitoring and Assessing Internal Control
Internal control effectiveness is an ongoing process. People design and implement internal controls which make them subject to change over time. In other instances the internal control system weren’t designed or properly implemented. These represent some of the underlying reasons for monitoring internal control on a regular basis.
I utilize the new COSO guidance for monitoring internal control to help your evaluation team develop an effective assessment process. The first step is to help you establish a baseline for monitoring since it provides a starting point to conduct and engage in an effective monitoring process.
You will receive guidance in developing procedures for both ongoing evaluations and separate evaluations. Ongoing monitoring processes are designed to determine that proposed or implemented changes in your internal control system are functioning as intended.
I apply the four key elements of establishing an internal control monitoring baseline:
1. Control Baseline
2. Change Identification
3. Change Management
4. Control Revalidation
You will be guided through the development of each of these four elements in monitoring your internal control system.
From this starting point, I will help you design and execute the monitoring procedures to assist your evaluation team review persuasive information as well as indirect information regarding the effectiveness of your control system. I utilize a four-step approach:
- Prioritize Risks
- Identify Controls
- Identify Information
- Implement Monitoring
This four-step process is developed into a flowing dynamic process in contrast to a step by step procedure.
Finally, your team will receive guidance in reporting results of the assessment. In addition, I will help guide your team in the application of evaluation technology and in establishing appropriate levels of documentation. The evaluation process is scaled based on both the size and complexity of the organization to achieve a cost effective evaluation process.
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