Which function is responsible for monitoring the operation of controls?

Which function is responsible for monitoring the operation of controls?

• A. Internal audit
• B. Department heads
• C. Internal audit or department heads
• D. External auditors

Answer: (C)

Monitoring whether controls operate effectively is an ongoing responsibility shared by those who own the processes and by an independent assurance function. Department heads supervise the day-to-day functioning of controls in their areas, reviewing performance, examining exception reports, and taking corrective action as needed. Internal audit provides independent assessment of whether controls are properly designed and operating across the organization and follows up on any deficiencies identified. External auditors focus on evaluating control effectiveness as part of the audit, not on continuous monitoring within the organization. Because both management (via department heads) and internal audit play active, ongoing roles in monitoring controls, the option that captures this dual responsibility is the best answer.

Monitoring whether controls operate effectively is an ongoing responsibility shared by those who own the processes and by an independent assurance function. Department heads supervise the day-to-day functioning of controls in their areas, reviewing performance, examining exception reports, and taking corrective action as needed. Internal audit provides independent assessment of whether controls are properly designed and operating across the organization and follows up on any deficiencies identified. External auditors focus on evaluating control effectiveness as part of the audit, not on continuous monitoring within the organization. Because both management (via department heads) and internal audit play active, ongoing roles in monitoring controls, the option that captures this dual responsibility is the best answer.