What is NOT a method of Monitoring internal controls?

Monitoring internal controls is critical for ensuring that an organization effectively manages risks and complies with relevant laws and regulations. The correct choice indicates that external audits are not a method used for ongoing monitoring of internal controls.

Self-assessments allow employees or departments within the organization to evaluate their own internal controls regularly, identifying areas for improvement. Peer reviews encourage collaboration and sharing of best practices among colleagues, contributing to a culture of continuous improvement in internal control processes. Internal auditing involves an internal team systematically evaluating the effectiveness and compliance of internal controls, typically on a regular schedule.

In contrast, external audits are performed by independent third parties who assess the overall financial statements and compliance of an organization, but they do so at specific intervals, usually once a year. Rather than continuously monitoring internal controls, external audits provide a snapshot evaluation and rely on the organization’s reports and records. Thus, while they are important for overall compliance and assurance, they do not qualify as a method of ongoing monitoring.