Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Monitoring, as a component of internal control, primarily involves assessing the effectiveness and efficiency of controls over time. This process is crucial because it helps ensure that internal controls remain relevant and functional in the face of changing conditions and risks. By regularly examining the controls in place, organizations can identify areas that may require updates or improvements, thereby enhancing their overall risk management and operational effectiveness.

This continuous assessment is essential because it helps organizations not only detect potential deficiencies in control systems but also confirms that the implemented controls are working as intended. This proactive approach enables administrators to respond promptly to any identified issues, ensuring that the internal control system evolves alongside the organization's needs.

While other options might touch on aspects related to internal control, they do not encapsulate the core purpose of monitoring as well as the concept of assessing the effectiveness of controls over time does. For example, evaluating risk management tactics, training personnel, and conducting performance reviews can all be significant activities within an organization, but they do not specifically denote the ongoing assessment and evaluation aspect inherent in monitoring internal controls.