A local industrial company has two departments. In the larger department, about 45 sales invoices are completed
Question:
A local industrial company has two departments. In the larger department, about 45 sales invoices are completed each day; in the smaller department, about 15 invoices are completed each day. About 50% of all sales invoices completed in each department specify discounts from the company’s list prices. However, the exact percentage varies from day to day. It may be higher than 50% sometimes and lower than 50% other times. For a period of one year, and for each department, a member of the audit staff kept track of the number of days on which more than 60% of the sales invoices specified discounts.
Required:
Which department do you think showed the greater number of such days?
a. The larger department.
b. The smaller department.
c. About the same.
Step by Step Answer:
Auditing An International Approach
ISBN: 978-1259087462
7th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley