In the business environment, the role of supervision is the process capable of verifying that the proper functioning of the system is maintained over time. This is achieved through continuous supervision activities, periodic evaluations or a combination of both.
Continuous supervision occurs in the course of operations. It includes both normal management and supervisory activities, as well as other activities carried out by staff in the performance of their duties.
The scope and frequency of the evaluations will depend on the risk assessment and the efficiency of the supervision processes, understanding that it is an organizational plan of policies and procedures that concerns the custody of economic resources.
Consequently, examining through the internal control process would help to ensure the statements of results, allowing effective financial decisions to be made.
As for monitoring, this action is responsible for performing concurrent, separate or a combination of both evaluations, it is used to determine whether each of the components of internal control, including controls to enforce the principles within each component, is present and functioning. Findings are evaluated and differences are communicated in a timely manner.