Answered: You are using sampling to test the…

You are using sampling to test the following control: all credit sales over $1,000 require a credit check. What is the population for your test?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a standard deviation of 0.06. The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to 0.06. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H, and the alternative hypothesis H, that we would use for this test. Ho H¡: 0 O
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Calculate total projected mistreatment if the following three mistreatments were discovered in a PPS sample when the sampling interval is $1,000. Recorded Amount Audit Amount Sampling interval Total Projected Mistreatment 1st mistreatment $400 $320 $1,000 _________________ 2nd mistreatment 500 0 $1,000 _________________ 3rd mistreatment 3,000 2,500 $1,000 _________________
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Sample Selection. Hunter McNeal is studying and evaluating Branyon’s internal controlsrelated to the mathematical verification of sales invoices. In this verification, Branyon’s control activities require that employees perform the following procedures:∙ Verify that sales invoices are prepared only for items actually shipped to customers. Thisactivity is evidenced by requiring employees to place a checkmark next to quantities onthe sales invoices.∙ Verify that prices charged to customers are from approved price lists. This activityis evidenced by requiring employees to place a checkmark next to prices on the salesinvoice.∙ Verify that extensions and footings on invoices are mathematically accurate. This activityis evidenced by requiring employees to initial the bottom of the invoice in a sectionmarked “Mathematically verified by.”To verify the operating effectiveness of these activities, McNeal established an expectedpopulation deviation rate of 3 percent, a tolerable rate of deviation…
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How large a sample should be selected to provide a 95% confidence interval with a margin of error of 6? Assume that the population standard deviation is 20. Round your answer to next whole number.