An appropriate engagement objective for an audit of the organization’s governance system would be to assess the design, implementation, and effectiveness of the organization’s ethics program. Governance encompasses the processes and structures used to direct and manage an organization, and assessing the ethics program falls directly under evaluating the ethical climate and governance practices of the organization. The other options focus on specific aspects such as annual reports, privacy controls, and tax payments, which are more related to operational or compliance audits rather than governance.