ATTRIBUTE SAMPLING PROBLEM
Question # 00067720
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Updated on: 05/09/2015 11:12 PM Due on: 05/22/2015
ATTRIBUTE SAMPLING PROBLEM
You have been assigned to test the company's internal controls over credit authorization.
You have determined that there are 20,000 sales invoices processed during the year.
The parameters given to you by the audit manager are: 95% confidence that no more than 5% of the sales invoices were not approved (deviations).
Based on last year's audit, it is estimated that approximately 1% of sales invoices deviate from the internal control being tested. You can accept a tolerable deviation rate of 5%.
After selecting your sample you discover 3 deviations.
Required:
Using the tables provided (see attached) determine the sample size and evaluate your results given the 3 deviations uncovered.
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Rating:
/5
Solution: ATTRIBUTE SAMPLING PROBLEM SOLUTION