Eva Islam, CA is auditing a company where it is experiencing strikes regularly, has been under investigation with non-compliance with legislation and is falling behind competitors. What kind of risk is being assessed?
A) fraud risk
B) going concern risk
C) a and b
D) none of the above

Question

Quizplus · Accepted Answer

The situation describes a going concern risk, as the company is facing financial and operational difficulties that could potentially threaten its ability to continue operating in the long-term. It does not necessarily indicate fraud risk, although non-compliance with legislation could potentially lead to fraudulent activity in the future.

Eva Islam, CA Is Auditing a Company Where It Is