The Big Insurance Company Implemented a New Computer System to Track

question 74

Multiple Choice

The Big Insurance Company implemented a new computer system to track and record insurance premiums receivable.The program automatically prints invoices and sends them to customers when premiums are due.Due to a program error,a whole series of invoices were included in sales but not in accounts receivable.The general balance-related audit objective affected by this activity is

• A)completeness.
• B)accuracy.
• C)classification.
• D)existence.

---

Definitions:

Abate

To reduce in amount, degree, or severity; often used in the context of something undesirable.

Format

A structure or layout of data that specifies its arrangement and organization.

Rapport

A positive relationship characterized by mutual understanding, trust, and agreement between people.

Empathy

The ability to understand and share the feelings of another person from their perspective.