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:

Republican Administrations

Periods of governance in the United States where the executive branch is controlled by the Republican Party.

Democratic Administrations

Periods of governance in the United States where the Democratic Party controls the presidency and/or has significant influence in the legislative branch.

Committee on Administrative Management

A committee established to study and improve the organization and operations of the federal government.

President Needs Help

In the context of governance and political administration, this phrase suggests the idea that a President requires the support of advisors, cabinet members, and other government officials to effectively execute the duties of the office.