The True Proportion of Accounts Receivable with Some Kind of Error

question 28

True/False

The true proportion of accounts receivable with some kind of error is 4 percent for Venal Enterprises. If an auditor randomly samples 50 accounts receivable, it is acceptable to use the normal approximation to estimate the probability that fewer than two will contain errors.

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Definitions:

Consumer Financial Protection Bureau

A U.S. government agency responsible for ensuring consumer protection in the financial sector, including mortgages, credit cards, and student loans.

Federal Consumer Financial Regulatory System

This system comprises federal laws and agencies tasked with regulating financial products and services to protect consumers from unfair, deceptive, or abusive practices.

Office of the Comptroller

The Office of the Comptroller is a government agency responsible for overseeing the execution of government or corporate financial policies and procedures.

Fair Credit Reporting Act

A federal law in the United States designed to protect the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies.