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Only thing is if your PC monitor doesn't have a sound input, you won't get any sound.
You have to plug the sound connector bits from the cable into external speakers
Audio is not done through VGA. Seperate cables for that, you'll just need some sort of adapter to in screen speakers/external ones depending upon what you have.
You'll have the 360 VGA connector that will run from your 360 into the back of your Monitor, then on the 360 VGA lead you will also have a long audio wire that is attached, this will have the red and white audio connectors. If you are running your sound from an external sound source, like 5.1 surround etc then you'll need to connect these to wires to that. Depending on what sound source you are using you may need an adapter, but you'll soon find out.