What is the account and assertion for audit at risk

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Question - An insurance company has engaged in acquiring and retaining policyholders in the new-to-industry segments of the market by focusing on affordability and flexibility of its policies. Due to the nature of the industry and value of individual policies the insurance company regularly monitors its premiums in arrears and prompt recovery action is undertaken when accounts in arrears are identified. Where accounts remain in arrears past a grace period of 70 days as specified in the standard contract extended to customers, the insurance company practice is to terminate these policies. The insurance company engages debt collection agencies to obtain settlement of accounts in arrears where all other efforts prove futile.

Base on the case above what is the account and assertion for audit at risk, and what substantive procedure should be taken?

Reference no: EM132509928

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