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COSO - Integrated Internal Control Framework
COSO CONTROL COMPONENT: MONITORING CONTROL ACTIVITIES
COSO PRINCIPLE NO. 16 & 17
COSO CONTROL OBJECTIVE: Consideration of risk of Fraud.
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 for mitigating the specific risk of fraud the management has established anti-fraud control
activities.
2) Ensure that the management has create awareness in relation to the commitment to ethical behavior
of the employees.
3) Ensure that the management has developed the standard method for assessment of fraud risk.
4) Ensure that the organization has an effective control environment.
5) Ensure that appropriate process is available for performing assessment and monitoring activities.

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 mechanism available
1.1 for determining the fraud risk and designed
control activities to mitigate it.

Evaluate the mechanism and check its

1.2 reasonableness.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management and evaluate the
1.3 existence of the preventive and detective
controls.

Verify effective design and implementation of

1.4 the controls.

Discuss with management and obtain

understanding of the implementation of
1.5 controls for preventing asset
misappropriation.

Verify the controls and evaluate that such

1.6 controls are effective for the objective
achievement.

Discuss with management and obtain

understanding control's documents available
1.7 for preventing overriding of controls by
management.

Check that all such controls are not

1.8 overrided and operated effectively.

Discuss with management and obtain

understanding of the process available for
1.9 security controls which will be helpful for
detecting fraud and monitoring the activities.

Verify that the above referred process is

1.10 available and is in working condition.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref Remarks
Initials Spent Expected Finished By:
Ref.
Determine the mechanism available for
verifying the management's commitment
2.1 towards ethics and anti-fraud programs are
periodically and appropriately communicated
within the organization.

Discuss with management and obtain

understanding of the procedures utilize for
3.1 performing assessment in relation to fraud
risk.

Discuss with management and identify how

3.2 often the fraud risk assessment are
performed by the management

Obtain the details of the parties which are

included in the assessment of fraud risk and
cross match with the personnel involved in
3.3 the risk assessment in order to ensure that
the responsibilities has been assigned by the
management.

Verify that the Chief Financial Officer reviews

3.4 the fraud risk assessment.

Discuss with management and obtain

3.5 understanding of all the appropriate levels of
the organization.

Obtain fraud risk assessment performed by

management at different levels and ensure
3.6 that risk assessments have been performed
appropriately at all levels.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref Remarks
Initials Spent Expected Finished By:
Ref.
Verify that the all fraud considerations are
properly implemented during the course of
3.7 review and identify the internal and external
factors.

Discuss with management in relation to the

3.8 laws and regulations that the organization
complied with.

Verify that the procedures are available for

3.9 complying the laws.

Discuss with management and obtain

understanding of the mechanism available
for assessing the tone at the top and
4.1 maintain a culture that encourages ethical
behavior, consultation, and open
communication.

Evaluate that how the importance of a proper

tone at the top are encourage and culture of
4.2 ethical behavior that emphasizes integrity.

Check the methods available for

4.3 communicating to the employees.

Discuss with Audit Committee and obtain

understanding of the process which
4.4 implemented to ensure that anti-fraud
programs and controls have sufficient
oversight.

Verify that the process as referred above is

4.5 properly implemented.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref Remarks
Initials Spent Expected Finished By:
Ref.
Evaluate the reasonableness of the process.
4.6

Discuss with internal auditor of the

organization in relation to his involvement in
the anti-fraud programs and controls as well
4.7 as the verification of effectiveness of such
antifraud programs and controls which are
monitored.

Check that the report issued by the internal

4.8 auditor of the organization is submitted to the
Audit Committee.

Verify that the Chief Internal Auditor reports

to a level within the organization that allows
4.9 the Internal Audit activity to fulfill its
responsibilities.

Discuss with Human Resource management

and evaluate that the policies and
4.10 procedures in relation to the hiring and
promotion are in place and are appropriately
approved and documented.

Verify such policies and identify that the

background check of employees expected to
4.11 have influence over financial reporting or
involved in the preparation of the financial
statements are included.

Check that to measure employees' behavior

4.12 performance evaluation system is there.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management in relation to the
4.13 training provided to the employees about
fraud, ethics and code of conduct.

Check the documented training plan is

available with the organization and ensure its
4.14 reasonableness.

Draw a sample of employees, and examine

the records of the employees regarding the
4.15 training they attended during the course of
review.

Discuss with Audit Committee and identify to

5.1 whom the internal audit department reports.

Verify that such reporting allow the Internal

5.2 Audit activity to fulfill its responsibilities.

Evaluate the restriction, if any, while

5.3 reviewing the organizational operations.

Verify the anti-fraud programs and controls

5.4 performed by Internal Audit during the course
of review.