Choice "C" is correct. Regular reporting to the audit committee represents reporting of deficiencies, not ongoing monitoring.
Choice "d" is incorrect. Ongoing monitoring of internal controls include such functions as verification that major disbursements meet the criteria for planned risk retention as part of a program of insurance. Formal authorization of all major disbursements such as for claims and reinsurance premiums for this purpose represent an ongoing monitoring.
Choice "a" is incorrect. Ongoing monitoring of internal controls include such functions as authorization of major disbursements, reviews of large or unusual transactions and high level reviews of disaggregated information. Reviews of changes in liability reserves in excess of a specified threshold represent ongoing monitoring.
Choice "b" is incorrect. Ongoing monitoring of internal controls include such functions as authorization of major disbursements, reviews of large or unusual transactions and high level reviews of disaggregated information. Monthly reviews of disaggregated gross margin and operating margin data by line of coverage represents ongoing monitoring.