An Auditor Wanted to Test Credit Approval on 10,000 Sales

question 28

Multiple Choice

An auditor wanted to test credit approval on 10,000 sales invoices processed during the year.The auditor designed a statistical sample that would provide a 1% risk of overreliance (99% confidence) that not more than 7% of the sales invoices lacked approval.The auditor estimated from previous experience that about 2.5% of the sales invoices lacked approval.A sample of 200 invoices was examined and 7 of them were lacking approval.The auditor then determined the upper limit rate of deviation to be 8%. The allowance for sampling risk was

• A) 5.5%.
• B) 4.5%.
• C) 3.5%.
• D) 1%.

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Definitions:

Traumatic Brain Injury

A form of acquired brain injury occurring when a sudden trauma causes damage to the brain, which can lead to a wide range of functional short or long-term changes affecting thinking, sensation, language, or emotions.

Site of Impact

The site of impact refers to the specific location or point where something, such as a physical force or a biological influence, directly affects or collides with an object or organism.

Traumatic Brain Injuries

Physical trauma to the brain, causing temporary or permanent impairment of cognitive, physical, and psychosocial functions.

Women

Women are adult human females, distinguished biologically by reproductive anatomy including structures such as ovaries and capable of giving birth from puberty until menopause.