Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

The three major objectives that internal controls are intended to meet, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), are operations, reporting, and compliance. These objectives reflect the fundamental aspects of a robust internal control system.

Focusing on operations, this aspect ensures that organizational operations are effective and efficient, helping to safeguard assets and prevent loss. It emphasizes the importance of achieving operational goals and maintaining smooth business processes.

The reporting objective pertains to the reliability of financial reporting, ensuring that the organization produces accurate and timely financial statements. This fosters transparency and builds stakeholder trust, which is vital for strategic decision-making both within the organization and externally.

Compliance refers to adhering to applicable laws, regulations, and policies. This objective is crucial for maintaining the organization's integrity and avoiding legal complications.

Overall, these three objectives establish a comprehensive framework that organizations can use to design, implement, and maintain effective internal controls that enhance overall governance.