The monitoring component of internal control excludes:

Choice "d" is correct. Monitoring is the process of assessing the quality of internal control

performance over time and taking necessary corrective actions. Eliminating a control that is not

operating effectively would not be an appropriate corrective action.

Choice "a" is incorrect. Information derived from external parties (such as customer complaints and

regulator comments) may be useful in identifying problems with the internal control structure.

Choices "b" and "c" are incorrect. Assessing the quality of internal control performance over time

and improving controls that are not operating effectively are part of the monitoring process.