Under an Effective System of Internal Control,errors Occur Only as a Result

question 51

True/False

Under an effective system of internal control,errors occur only as a result of fraud or dishonesty.

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Definitions:

Decreasing Term Insurance

A type of term life insurance where the death benefit decreases over time, often used to cover specific financial obligations that reduce over time, like a mortgage.

Premium

The amount paid for an insurance policy, representing the cost to keep the policy active.

Death Benefit

A payout to the beneficiary of an insurance policy or pension plan upon the death of the insured individual or member.

Automobile Risk Assessment

The process of evaluating the potential risks associated with insuring a particular vehicle, considering factors like model, age, and driver history.