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The Chief Executive Officer (the top manager) of the organization has overall responsibility for designing and implementing effective internal control.

Example of an effective internal control is a control objective for an accounts payable function might be: "Payments are only made to authorized vendors for goods or services received." This is a validity objective. A typical control procedure designed to achieve this objective is: "The accounts payable system compares the purchase order, receiving record, and vendor invoice prior to authorizing payment."

At the organizational level, internal control objectives relate to the reliability of financial reporting, timely feedback on the achievement of operational or strategic goals, and compliance with laws and regulations. So the effective internal control implies the organization generates reliable financial reporting and substantially complies with the laws and regulations that apply to it.

However, whether an organization achieves operational and strategic objectives may depend on factors outside the enterprise, such as competition or technological innovation. These factors are outside the scope of internal control; therefore, effective internal control provides only timely information or feedback on progress towards the achievement of operational and strategic objectives, but cannot guarantee their achievement.