Which of the following would be an appropriate conclusion to report to management?

An internal auditor completed an audit of a bank’s loan department and found all significant risks to be managed adequately through effective internal controls.

Which of the following would be an appropriate conclusion to report to management?
A . The residual risk is lower than or equal to the risk appetite.
B . The residual risk is higher than or equal to the risk appetite.
C . The inherent risk is lower than or equal to the risk tolerance.
D . The inherent risk is higher than or equal to the risk tolerance.

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Answer: A