System and Organization Controls (SOC) 2/CC4 Monitoring Activities/18 of 61
CC4.1COSO Principle 16: The entity selects, develops, and performs ongoing and/or separate evaluations to ascertain whether the components of internal control are present and functioning
Control family: CC4 Monitoring Activities
Control description
The following points of focus highlight important characteristics relating to this criterion: Points of focus specified in the COSO framework:
• Considers a Mix of Ongoing and Separate Evaluations — Management includes a balance of ongoing and separate evaluations.
• Considers Rate of Change — Management considers the rate of change in business and business processes when selecting and developing ongoing and separate evaluations.
• Establishes Baseline Understanding — The design and current state of an internal control system are used to establish a baseline for ongoing and separate evaluations.
• Uses Knowledgeable Personnel — Evaluators performing ongoing and separate evaluations have sufficient knowledge to understand what is being evaluated.
• Integrates With Business Processes — Ongoing evaluations are built into the business processes and adjust to changing conditions.
• Adjusts Scope and Frequency — Management varies the scope and frequency of separate evaluations depending on risk.
• Objectively Evaluates — Separate evaluations are performed periodically to provide objective feedback.