16.06

Monitoring

Principle 16 - Perform Monitoring Activities

Attribute 16.06 - Management uses separate evaluations to monitor the design and operating effectiveness of the overall internal control system at a specific time or of a specific function or process. The scope and frequency of separate evaluations depend primarily on the assessment of risks, risk responses, evolving technology, identification of new risks or deficiencies, results of ongoing monitoring, and rate of change within the entity and its environment. Management may also increase the frequency of separate evaluations when management rapidly implements a new program or substantially changes an existing one, such as emergency assistance programs. Separate evaluations include observations, inquiries, reviews, improper payment estimates,¹¹² and other examinations, as appropriate. These evaluate whether controls to effect principles across the entity are designed, implemented, and operating effectively. Separate evaluations may also take the form of self-assessments, which include cross-operating unit or cross-functional evaluations.