The risk that remains after management implements internal controls is
A) Inherent risk
B) Residual risk
C) Risk appetite
D) Risk assessment

Question

Quizplus · Accepted Answer

Residual risk is the risk that remains after internal controls are implemented. Inherent risk is the risk before any controls are in place, risk appetite is the level of risk an organization is willing to accept, and risk assessment is the process of identifying, analyzing, and evaluating risks.

The Risk That Remains After Management Implements Internal Controls Is