Eva Islam, CPA 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 described indicates that the company may have difficulties continuing its operations in the future, which is a going concern risk.

Eva Islam, CPA Is Auditing a Company Where It Is