Comprehensive and Detailed Step-by-Step Explanation:
Risk Acceptance: By deciding that transactions below $50 do not require authorization, management is consciously accepting the low-level risk associated with this decision to streamline processes and reduce administrative burdens.
[: IIA Practice Guide on Risk Management explains that risk acceptance involves tolerating risks that fall within the organization’s risk appetite., Other Options:, Option A: Risk avoidance would involve eliminating the activity altogether, which is not the case here., Option C: Risk reduction would involve implementing controls to mitigate the risk, not eliminating authorization requirements., Thus, the correct answer is B. Accept., ]
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