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.
Answer: A