The Internal Auditing Staff of a Local Manufacturing Company Performs

question 105

Multiple Choice

The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are more than 90 days overdue (delinquent) .The historical records of the company show that over the past 8 years,the average has been that 13 percent of the accounts have been delinquent.For this quarter,the auditing staff randomly selected 250 customer accounts.What is the probability that no more than 40 accounts will be classified as delinquent?

• A)42.07%
• B)92.07%
• C)7.93%
• D)40.15%
• E)90.15%

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Definitions:

Social Function

The roles and contributions individuals or institutions play within a society to maintain and enforce norms and to promote cohesion and stability.

Cognitive Dissonance Theory

A theory suggesting that individuals experience mental discomfort and psychological stress when holding two or more contradictory beliefs, values, or attitudes.

Attribution Theory

A psychological theory that explains how individuals pinpoint the causes of their own and others' behavior and events.

Equity Theory

A theory in social psychology that proposes individuals assess the fairness of their relationships by analyzing their input and outcome ratios to those of others.