Editor’s Note: The Federal Reserve Board of Governors “Supplemental Policy Statement on the Internal Audit Function and Its Outsourcing” dated January 23, 2013 is attached here. Below is an excerpt from the Statement.
Internal Audit Continuous Monitoring
Internal audit is encouraged to utilize formal continuous monitoring practices as part of the function’s risk-assessment processes to support adjustments to the audit plan or universe as they occur. Continuous monitoring can be conducted by an assigned group or individual internal auditors. An effective continuous monitoring process should include written standards to ensure consistent application of processes throughout the organization.