6.02

Risk Assessment

Principle 6 - Define Objectives and Risk Tolerances

Attribute 6.02 - Management defines objectives, and related subobjectives, in specific and measurable terms to enable the design of internal control for related risks.³⁴ Specific terms are fully and clearly set forth so they can be easily understood. Measurable terms allow for the assessment of performance toward achieving objectives. Objectives are initially set as part of the objective-setting process and then refined as they are incorporated into the internal control system when management uses them to establish the control environment.

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