Internal controls should be evaluated on a regular basis to ensure their effectiveness and adaptability to changing circumstances. The frequency of evaluation may vary depending on factors such as the size of the organization, the industry it operates in, and the level of risk it faces.
Generally, it is recommended to perform internal control evaluations at least annually. However, significant changes in the business environment, processes, or regulations may warrant more frequent evaluations. Continuous monitoring and periodic assessments help identify weaknesses, address emerging risks, and enhance the overall control environment.