As internal auditing adapts to the continuous changes in organizations and in society, the guidelines contained in the Standards will be modified by the issuance of Statements on Internal Auditing Standards. This statement interprets Guideline 350.01 which discusses the subject of audits of accomplishment of established objectives and goals for operations or programs. This guidance was developed because an increasing number of internal auditors are conducting, or planning to conduct, this type of audit. Summary Internal auditors should review operations or programs to ascertain whether results are consistent with established objectives and goals, and whether the operations or programs are being carriedout as planned. Management is responsible for establishing operating or program objectives and goals, developing and implementing control procedures, and accomplishing desired operating or program results.
Operations are the recurring activities of an organization.
Programs are the special purpose activities of an organization. Management is responsible for establishing criteria to determine if objectives and goals have been accomplished. Internal auditors should ascertain whether adequate criteria have been established by management. Audits may be carried out with respect to an entire operation or program or only a portion of it. Internal auditors should disclose in a report the nonexistence or inadequacy of any needed criteria.