Eva Islam, CPA Is Auditing a Company Where It Is

question 29

Multiple Choice

Eva Islam, CPA is auditing a company where it is experiencing strikregularly, 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

---

Definitions:

Indirect Expenses

Costs that are not directly traceable to a specific cost object, such as overhead costs for running the business.

Contribution Margin

The amount by which a product's sales revenue exceeds its variable costs, indicating how much it contributes to covering fixed costs and generating profit.

Departmental Performance

refers to the evaluation of how individual departments within an organization are performing, often measured by financial results, productivity, and achievement of goals.

Advancements in Technology

Ongoing progress and developments in technology that enhance capabilities, improve efficiency, and contribute to various sectors like business, medicine, and education.