6. - determine the priorities of the IA activity - inherent risk vs. residual risk - can occur at strategic, operational, financial or compliance levels - benefits: aligns risk appetite & strategy ; enhances risk response decisions ; min. operational losses & surprises
7. *important terms* 1. Professional Skepticism: - questioning mind + ongoing assessment 2. Due Professional Care: - competent & sufficient skills 3. Awareness of Fraud: - able to detect fraud & its indicator
