A chief audit executive (CAE) determined that management chose to accept a high-level risk that...

If the chief audit executive (CAE) determines that management has chosen to accept a high-level risk that may be unacceptable to the organization, the CAE should first discuss the matter with senior management. If senior management does not address the concern, the CAE should escalate the issue to the board. This escalation process ensures that the highest levels of governance are aware of significant risks and can take appropriate action if necessary. It also aligns with the CAE's responsibility to ensure that risks are properly managed within the organization.References:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2600 - Communicating the Acceptance of Risks