Printed in the United States of America. The Standards states that internal auditing is to assist members of the organization in the effective discharge of their responsibilities by providing them with information regarding control. However, differences of opinion have existed regarding the nature of control and the roles of the participants in its establishment, maintenance, and evaluation. This statement provides guidance on these issues by focusing on guidelines 300.02 and 300.03 and providing three additional guidelines. This statement provides guidance to internal auditors on the nature of control and the roles of the participants in its establishment, maintenance, and evaluation.
Control results from management's planning, organizing, and directing.
The overall system of control is conceptual in nature. It is the integrated collection of systems used by an organization to achieve its objectives and goals. Management plans, organizes, and directs in such a fashion as to provide reasonable assurance that established objectives and goals will be achieved. Internal auditing examines and evaluates the planning, organizing, and directing processes to determine whether reasonable assurance exists that objectives and goals will be achieved. All systems, processes, operations, functions, and activities within the organization are subject to internal auditing's evaluations.