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COSO - Integrated Internal Control Framework
COSO CONTROL COMPONENT: MONITORING CONTROL ACTIVITIES
COSO PRINCIPLE NO. 16 & 17
COSO CONTROL OBJECTIVE: Development of Products
COSO ORGANIZATION LEVEL OF RESPONSIBILITY: BUSINESS UNITS AND ACTIVITY LEVEL

Carry out the monitoring activities on internal controls implemented in the organization as per listed below procedures and prepare an evaluation of internal controls
and communicate the deficiencies identified during the evaluation of internal controls. you can prepare an Internal Audit report for communicating the internal control
deficiencies identified.

Objective:

1) Ensure that all projects relating to product development are appropriately authorized, properly complied with the organizational objective.
2) Ensure that appropriate design assessment and product satisfaction processes are there quality and performance matters are adequately dealt with, the product
lines do not become prematurely obsolete.
3) Ensure that accurate and valid resources are required to undertake the development.
4) Ensure that proper trained staffs are there to respond to the customers requirements and all the affected functions are appropriately coordinated for achieving the
defined objectives.
5) Ensure that confidentiality relating to the product developments is properly maintained and adequate and appropriate protection are in place for eventual product
from exploitation by others.
6) Ensure that relevant changes are appropriately authorized and any significant project variations are correctly dealt with on immediate basis.
7) Ensure that adequate planning and monitoring of Market launch of new or modified products are in place and products are appropriately tested/checked prior to its
launch.
8) Ensure that appropriate monitoring is done for Initial sales performance of new products.

Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management and obtain the list
1.1 of completed and ongoing projects.

Select a representative sample of completed

and ongoing projects from the list as
1.2 mentioned above for testing purpose.

Check that valid projects in relation to

1.3 product development are appropriately
authorized.

Discuss with management and obtain the

1.4 approved strategic plans and strategic
business objectives of the organization.

Select a representative sample of completed

product development plans and ongoing
1.5 projects from the list mentioned above for
testing purpose.

Check that appropriate documents in relation

1.6 to strategic plans and objective are in place.

Discuss with management and obtain the list

1.7 of completed and ongoing projects.

Select a representative sample of completed

and ongoing projects from the list as
1.8 mentioned above for testing purpose.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Obtain understanding of the product
1.9 development of the sample selected above.

Evaluate that all are appropriately

1.10 authorized, implemented and recorded.

Discuss with management and obtain the list

1.11 of product development plans for the
completed and ongoing projects.

Select a representative sample of product

development plans for completed and
1.12 ongoing projects from the list as mentioned
above for testing purpose.

Evaluate that the plans are appropriately

authorized with the intention of extending /
1.13 prolonging the life of existing products or
introducing viable new lines.

Discuss with management and obtain

understanding of how product developments
1.14 are geared to a price driven market.

Obtain an understanding of management

1.15 method for cost accounting.

Obtain the list of costs associated with the

1.16 product development projects for the
selected sample of projects.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Check that the product are in compliance
with the cost accounting method as defined
1.17 above and ensure that this method is
appropriately reviewed by management.

Obtain the list of ongoing projects and select

1.18 a representative sample for testing purpose.

Discuss with management and obtain the

1.19 supporting documents in relation to the
market research.

Check that the market research was

1.20 appropriately conducted in order to identify
product marketability.

Obtain the detail of product plans and select

2.1 a representative sample for testing purpose.

Discuss with management and obtain

2.2 supporting documentation prepared by the
management.

Check that the product plans are

appropriately reviewed by the management
2.3 in order to verify that they remain adequate,
appropriate and viable.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management and obtain
understanding of the mechanism available
2.4 for ensuring the product design and
specification which are conducted effectively.

Obtain the detail of product plans and select

2.5 a sample for testing purpose.

Check that the product design and

specification compliance are appropriately
2.6 reviewed by the management.

Obtain the detail of product plans and select

2.7 a sample for testing purpose.

Obtain the quality and performance

2.8 standards which are available.

Verify that the product development process

2.9 is adequately dealt with the relevant
standards.

Obtain the detail of product development

3.1 plans and select a representative sample for
testing purpose.

Verify that the documents utilized in order to

identify that all of the resources are
3.2 identified, costed, justified and properly
authorized.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Check that the product plans are
3.3 appropriately authorized by the
management.

Discuss with management and obtain

understanding of the method used to
4.1 communicate with all of the affected
functions in the product development
process.

Check that the involvement of affected

4.2 functions is based on the corroborating
documentations.

Discuss with management and obtain the list

4.3 of all affected staff. Select a representative
sample.

Sample selected above, obtain the list of all

training attended by the employee, and get
4.4 evidence for completion of employee's
training.

Tally the employee's training with the

organization's minimum training
4.5 requirements in order to respond to
customers requirements appropriately.

Discuss with management and obtain

5.1 meeting minutes and documents related to
product launch.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Check that the meeting minutes and
documents related to product launch identify
5.2 any issues prior to its launch of an eventual
product.

Discuss with management and obtain

understanding of how management
5.3 maintains confidentiality of its business
strategies, product details, and product
development plans.

Obtain any and all access logs from the

5.4 management.

Verify that only authorized personnel are

5.5 granted of restricted information on account
of roles and responsibility.

Discuss with management and obtain the list

5.6 of employees who are involved with product
development.

Select a representative sample of employees

5.7 from the list as mentioned above for testing
purpose.

5.8 Obtain their respective contract.

Verify that the contract contains the

5.9 confidentiality clauses in relation to the
condition of employment.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with management and obtain
understanding of the method used in order to
6.1 communicate with affected functions and to
monitor the progress of the product
development project.

Verify the coordination, definitions,

6.2 authorization and monitoring of the project.

Check that the adequate project

6.3 management of the product development is
in place.

Obtain the list of ongoing and complete

6.4 projects and select a representative sample
for testing purpose.

Obtain management's budget to actual

6.5 analysis during the product development.

Verify that the analysis is appropriately and

timely updated and in case of any problem
6.6 identified it should be reported on immediate
basis and corrective measures are available
to dealt with.

Discuss with management and obtain

understanding of how the timely, accurate
6.7 and relevant project information are being
provided by the management.

Obtain the relevant documents in relation to

6.8 the project information.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.

Check that the relevant documents in

relation to the project information provides
6.9 useful assistance to the management for
project updation.

Discuss with management and obtain

7.1 understanding of the product launch approval
process.

Obtain the list of new products which is going

to be launched. Select a representative
7.2 sample for testing purpose.

Verify that the launching of new product is

7.3 appropriately planned, coordinated, and
approved.

Select a representative sample of new

7.4 products launched from the list as mentioned
above.

Discuss with management and obtain the

standards in relation to the quality and
7.5 performance which are adopted by the
organization for quality control testing.

Check that the products are in line with those

7.6 quality and performance standards.

Obtain the list of new products launched and

7.7 select a sample for testing purpose.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref. Remarks
Initials Spent Expected Finished By:
Ref.
Discuss with the management in relation to
the minimum stock requirement of new
7.8 products and make comparison with the
actual stock in hand.

Check that the management evidences the

7.9 actual stock with the minimum requirement
comparison.

Discuss with management and obtain

understanding of the analysis relating to the
8.1 sales data of new products. Make
comparison of sales patter with business
objectives.

Examine that the analysis is appropriately

8.2 reviewed on periodical basis.

Discuss with management and obtain

understanding of how the tools are used in
8.3 order to prompt notify the management in
relation to the sales or performance
shortfalls.

Obtain and verify the documents in relation

8.4 to the usage of tools by the management.

Verify that the management reviews the

8.5 sales analysis on periodical basis.