Monitoring is the assessment of internal control performance over time. The purpose of monitoring is to determine whether internal control is adequately designed, properly executed, and effective. Internal control is adequately designed and properly executed if all five internal control components (Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring) are present and functioning as designed. Monitoring can be accomplished by ongoing monitoring activities and by separate evaluations of internal control such as:
On a haphazard basis, upper management may review various account reconciliations. This will ensure that financial activities are being performed on a timely basis and create a secondary level of review.
Departments within each college may perform peer reviews of transactions and accounts to ensure that financial activities are valid, sufficient supporting documentations were maintained and main duties have been segregated.
Internal audits and reviews can also be performed at the department or college level. This is referred to as the Continuous Auditing. The objective of Continuous Auditing is to assess the completeness, accuracy and propriety of a quarterly or semi-annually sample of transactions drawn from the University Accounting System.