IIA Exam IIA-IAP Topic 4 Question 3 Discussion

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.

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.