You Are Assigned to Audit Accounts Payable for a Manufacturing

question 38

Multiple Choice

You are assigned to audit accounts payable for a manufacturing client. As part of the planning, your manager sets a tolerable misstatement amount of+/- $125,000. Your review of unpaid invoices indicates an understatement error of $25,253 from a sample of $675,467. The population value of A/P is $5,241,687 at October 31st. The estimated error rate is:

• A) 6%.
• B) 0.001%.
• C) 3%.
• D) Cannot be determined.

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Definitions:

Teen Boys

Male individuals in the adolescent age group, typically between the ages of 13 and 19, experiencing physical, emotional, and social changes.

Own-Age Bias

The tendency to better recognize and remember faces of people who are around the same age as oneself.

Other-Race Effect

The inclination to identify faces belonging to the race one is most acquainted with more effortlessly, believed to form during early childhood.

Own-Race Bias

The tendency to more easily recognize faces of the race that one is most familiar with, compared to faces from other races.