The Internal Auditor for Your Company Believes That 10 Percent

question 29

True/False

The internal auditor for your company believes that 10 percent of their invoices contain errors. To check this theory, 20 invoices are randomly selected and 5 are found to have errors.
Based on the above information, the claim of the auditor will be rejected.

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Definitions:

Office Furniture

Furniture engineered for use in a workplace setting, including desks, chairs, and filing cabinets.

Mark-up

The supplementary cost added to goods for overhead coverage and profit realization.

Industrial Part

A component or section of an industrial sector or factory.

Mark-up Realized

The percentage increase between the cost of a product and its selling price, indicating the profit margin.