True or False: Once a corrective action plan is initiated, it needs to be monitored annually for effectiveness.

The statement that once a corrective action plan is initiated, it needs to be monitored annually for effectiveness is false. A corrective action plan (CAP) is designed to address specific issues related to fraud, waste, and abuse. While it is essential to monitor the effectiveness of the CAP, monitoring does not necessarily need to occur on an annual basis. The frequency of monitoring should depend on the nature and severity of the issue, as well as the risks involved.

Effective monitoring of a CAP might require shorter review cycles initially, particularly if the problem is serious or if there are significant changes in the operations or environment. Once the issue is sufficiently resolved, the organization may determine that less frequent monitoring is appropriate, or they may decide to focus on other risks that emerge over time. Thus, the need for annual monitoring does not apply universally to all corrective action plans.