6.05

Risk Assessment

Principle 6 - Define Objectives and Risk Tolerances

Attribute 6.05 -Management considers external requirements and internal expectations when defining objectives to enable the design of internal control. Legislators, regulators, and standard-setting bodies set external requirements by establishing the laws, regulations, and standards with which the entity is required to comply. Management identifies, understands, and incorporates these requirements into the entity's objectives. Management sets internal expectations and requirements through the established standards of conduct, oversight structure, organizational structure, and expectations of competence as part of the control environment.

>>>Navigational Buttons<<<

• Index of Attributes
• Previous Attribute - 6.04
• Next Attribute - 6.06