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COSO - Integrated Internal Control Framework
COSO CONTROL COMPONENT: MONITORING CONTROL ACTIVITIES
COSO PRINCIPLE NO. 16 & 17
COSO CONTROL OBJECTIVE: Entity's Control Environment.
COSO ORGANIZATION LEVEL OF RESPONSIBILITY: BUSINESS UNITS AND ACTIVITY LEVEL

Carry out the monitoring activities on internal controls implemented in the organization as per listed below procedures and prepare an evaluation of internal controls
and communicate the deficiencies identified during the evaluation of internal controls. you can prepare an Internal Audit report for communicating the internal control
deficiencies identified.

Objective:

1) Ensure that through attitudes and actions, the management establishes a commitment to character, integrity and high ethical values.
2) Ensure that for demonstrating the commitment to competence the management specifies the level which is required for particular jobs and translate those
requirements into knowledge and skills.
3) Ensure that the Board of Directors and Audit Committee actively owes the significant level of influence over the organization.
4) Ensure that an efficient control environment exist in operating style and Management's philosophy.
5) Ensure that for promoting an efficient control environment, the organizational structure is appropriately designed.
6) Ensure that policies and procedures in relation to the Human resource are appropriately developed and communicated in respect of expected levels of integrity,
ethical behavior and competence.

Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management and obtain
understanding of the company's code of
conduct and policies and procedures in
relation to the relevant ethical behavior.
1.1 Verify that the code is comprehensive and no
illegal or improper payment is made as well
as no conflicts of interest arises.

Examine that all employees are aware of the

code of conduct and management obtain
1.2 acknowledgement in case of any changes or
modification in the code of conduct.

Evaluate that where code of conduct is not

available in written form, the management
draw the attention towards importance of
1.3 integrity and ethical behavior of employees at
work and also communicate orally in the staff
meetings.

Discuss with management and identify the

1.4 method utilize for preventing unauthorized
investments.

Verify that unauthorized access is

appropriately prevented by matching the list
1.5 of approved staff having authority to invest.

Discuss with management and obtain

1.6 understanding of the ethical guidelines for
dealings with third parties.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.

Check that every transaction executed

between the customers, suppliers,
1.7 employees and other parties are on basis of
honesty and transparency.

Check that document in relation to the

authorization is available and ensure that it
1.8 must mention the appropriate level of
management having authority to deals with
the external parties.

Verify that in case of any change in the

1.9 above document, it must be appropriately
authorized.

Discuss with management and verify that

management review the integrity and
1.10 reputation of third parties on periodical basis.

Discuss with management and verify that

training plan for the employees are
appropriately documented. Select a
representative sample and check that their
2.1
records regarding the training attended by
them during the course of review.

Verify that the training attended by the

employees as referred above are appropriate
2.2 and relevant to their job profiles.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management and obtain
understanding of how cross-training is
2.3 operated. Select a sample and check that
how these employees were trained in a
different field than their current positions.

Verify that cross functional trainings attended

by the employees as referred above are
2.4 appropriate and relevant to their job profiles.

Discuss with management and verify that the

organization includes the training in relation
2.5 to new accounting and financial reporting
issues.

Obtain the list of employees working in the

accounting function. Select a sample and
2.6 verify that they received the appropriate
training in relation to the new accounting and
financial reporting issues.

Discuss with management and evaluate that

any certifications has been conducted for
2.7 assessing the knowledge of the accounting
personnel on such pronouncements.

Discuss with management and identify how

job descriptions are established. Select a
2.8 sample and verify that the content is
appropriate.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Check that in case of non-availability of
formal job descriptions, the informal job
2.9 descriptions available for defining the tasks.

Discuss with Chief Audit Executive and

obtain understanding of how the
communications of the Audit Committee are
communicated to Senior Management. Verify
3.1
the quality of the communications and check
that it is appropriately documented.

Select a sample from the communication as

referred above and verify that through
3.2 discussion with management that how such
questions were addressed.

Discuss with management and obtain the

curriculum vitae of the Board's members in
order to verify that such members will
understand the company's business
3.3
operations, strategic initiatives and major
transactions and may present alternate
views.

Discuss with management and obtain

organization's extraordinary Board meetings
3.4 conducted during the course of review.

Verify that the issues mentioned in the

3.5 meeting minutes were important.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management and obtain the
organizational chart defining that the Chief
Audit Executive reports to a level within the
3.6 organization that allows the internal audit
activity to carry out its responsibilities.

Check that the Audit Committee documents

3.7 meetings with internal and external auditors.

Discuss with management and obtain the

scope of activities in relation to the internal
3.8 and the external auditors of the organization.

Check that the scope of activities in relation

to the internal and external auditors are
3.9 approved by the audit committee.

Discuss with management and identify that

the whistle blowing, hotline or similar
3.10 mechanism is available within the
organization.

Check that mechanism as referred above are

3.11 available and verify its effectiveness.

Discuss with management and identify is

there any joint venture which has been joined
4.1 by the organization during the course of
review.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
In case of any joint venture joined by the
organization, verify that organization analysis
4.2 the risk and potential benefits prior to join the
venture.

Discuss with CFO and identify that who are

4.3 the persons in charge for the accounting and
financial reporting.

Check that person responsible for accounting

4.4 and financial reporting have appropriate
authority.

Verify that appropriate segregation of duties

4.5 available between the preparing and
reporting of accounting information.

Discuss with management and determine

how the organization promotes a sound
4.6 control environment and ethical behavior
among its employees.

Verify that organization promotes a sound

4.7 control environment and ethical behavior
among its employees.

Discuss with the CFO and verify that

4.8 generally accepted accounting framework is
being adopted by the company.

Verify that the adopted accounting

4.9 framework reflects the business economic
realities.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management and determine
5.1 how the management ensure the appropriate
delegation of authority.

Check that appropriate delegation of

5.2 authority is in place.

Discuss with management and determine

how the responsibility for the generation of
5.3 information is established by the
management.

Verify that the above are appropriately

5.4 documented, approved and implemented.

Discuss with management and obtain

understanding of how the responsibilities and
5.5 expectations for the finance and accounting
departments were communicated.

Discuss with finance and accounting

department employees and verify that they
5.6 are well aware of their specific
responsibilities.

Check that the responsibilities were

5.7 appropriately communicated and available in
written form.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with Human Resource and obtain
understanding of the policies and procedures
5.8 available for hiring and verify that most
qualified individuals are hired based on the
policies and procedures.

Check that annual performance evaluations

5.9 is in place in order to ascertain the
employees' behavior.

Select a sample and review the hiring and

5.10 recruitment procedures.

Discuss with Human Resource and

determine that the recruiting practices
6.1 include the entity's point of view in relation to
a sound control environment.

Check that the material presented to new

6.2 hires is in relation to the matter exists.

Discuss with Human Resource and verify

that the training to employees includes the
6.3 communication of their prospective roles and
responsibilities.

Check that the above communication is

6.4 appropriately documented.

Discuss with management and obtain

understanding of the method available for
6.5 making aware of the employees regarding
the concerned policies of the acceptable
behavior.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.

Check that the above are appropriately

6.6 monitored for onward compliance.

Discuss with Human Resource and verify

that the formal documented training plan is
6.7 available and check that how frequent
training is being provided to employees.

Examine the training calendar and evaluate

6.8 the appropriateness of the frequency of
training.