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.

Question

Quizplus · Accepted Answer

The error resulted in the omission of invoices from accounts receivable, indicating that the completeness objective was not met. This means that some transactions were not recorded in the system, leading to an incomplete representation of the organization's financial standing.

The Big Insurance Company Implemented a New Computer System to Track