Martin Shawbridge, a Manager at Cox, Durham, & Elliott, CA's

question 22

Multiple Choice

Martin Shawbridge, a manager at Cox, Durham, & Elliott, CA's was given the mandate to deal with the following risks: fraud risks, complex transactions, significant related party
Transactions. How would you classify these risks?

• A) audit risk
• B) inherent risk
• C) control risk
• D) significant risk

---

Definitions:

Net Capital Assets

The total value of a company's fixed assets less any accumulated depreciation, representing the actual worth of these assets in the company's balance sheet.

Book Value

is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.

Statutory Amalgamation

A process by which two or more companies legally consolidate into a single entity by statute, rather than by merging their assets and liabilities.

Business Combination

A transaction or event in which an acquirer obtains control of one or more businesses, usually involving the exchange of equity interests or cash.