Monitoring activities in an internal control structure determines that:
A) auditing procedures are to be restricted.
B) external audit assurance is no longer necessary.
C) improvements in internal control are overdue.
D) controls are operating as intended.

Question

Quizplus · Accepted Answer

Monitoring activities in an internal control structure are designed to evaluate the effectiveness of internal controls, identify areas that require improvement, and ensure that controls are operating as intended. Therefore, if monitoring activities determine that controls are operating as intended, it is a positive result and no further action is needed. Options A, B, and C are all incorrect because they do not accurately reflect the purpose of monitoring activities in an internal control structure.

Monitoring Activities in an Internal Control Structure Determines That