The Internal Auditing Staff of a Local Manufacturing Company Performs

question 22

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 delinquent more than 90 days overdue.The historical records of the company show that over the past 8 years 13 percent of the accounts are 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:

Corporate Income Tax

A tax imposed on the net income or profit of corporations.

Governs Least

A principle often associated with libertarianism, suggesting that the best government is one that exercises minimal intervention in personal lives and the economy.

Government

The organization or system through which a community or nation is governed, responsible for creating and enforcing rules and managing public resources.

Thomas Jefferson

The third President of the United States, a Founding Father recognized for authoring the Declaration of Independence.