Events that can adversely affect the company, such as asset losses due to theft or spoilage, accounting errors and their consequences, revenue losses, expense overruns, business interruptions, fraud and embezzlement, fines and penalties, civil liabilities, and losses of competitive advantage are called:
A) risk exposures.
B) loss exposures.
C) internal control areas.
D) audit exposures.

Question

Quizplus · Accepted Answer

Risk exposures are events that can adversely affect a company, such as asset losses due to theft or spoilage, accounting errors and their consequences, revenue losses, expense overruns, business interruptions, fraud and embezzlement, fines and penalties, civil liabilities, and losses of competitive advantage.

Events That Can Adversely Affect the Company, Such as Asset