The Risk That Remains After Management Implements Internal Controls Is

question 76

Multiple Choice

The risk that remains after management implements internal controls is

• A) Inherent risk
• B) Residual risk
• C) Risk appetite
• D) Risk assessment

---

Definitions:

External Perspective

The viewpoint of an individual or entity outside an organization, analyzing its operations, culture, and performance from an outsiders' perspective.

Supervising People

The act of overseeing and managing a group of people, ensuring they're working towards common goals efficiently and productively.

Management

The study of overseeing activities and supervising.

Overseeing Activities

Involves the monitoring, directing, and managing of tasks and operations to ensure they align with planned objectives and standards.