Internal auditors examine and evaluate the planning, organizing, and directing processes to determine whether reasonable assurance exists that objectives and goals will be achieved. Thus, all systems, processes, operations, functions, and activities within the organization are subject to internal auditing's evaluations. Audit committees have guidance and oversight responsibilities related to internal and external auditing's performance. Boards of directors have guidance and oversight responsibilities related to subordinate management's performance. Interpretations of Existing Guidelines Guideline 300.02 Guideline 300.02 states the purpose of the review for adequacy of the system of internal control is to ascertain whether the system established provides reasonable assurance that the organization's objectives and goals will be met efficiently and economically.
Objectives are the broadest statements of what the organization chooses to accomplish.
The establishment of objectives precedes the selection of goals and the design, implementation, and maintenance of systems whose purpose is to meet the organization's objectives and goals. Goals are specific objectives of specific systems and may be otherwise referred to as operating or program objectives or goals, operating standards, performance levels, targets, or expected results. Goals should be identified for each system. A system may also be a collection of subsystems operating together for a common objective or goal. The system-design process begins with the establishment of objectives and goals.