The chief audit executive (CAF) determined that the residual risk identified in an assurance engagement is acceptable. When should this be communicated to senior management? 

A. When the CAE reports the audit outcome to senior management. 

B. When the residual risk is identified before the engagement is complete. 

C. Immediately, as residual risk should be communicated as soon as possible 

D. When management of the area under review has resolved and mitigated the residual risk