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A review of payroll errors for the fiscal year 200304 shows 1.79 percent error, as compared to 1.97 percent for the preceding fiscal year, and

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A review of payroll errors for the fiscal year 200304 shows 1.79 percent error, as compared to 1.97 percent for the preceding fiscal year, and 1.72 percent for the first six months of the fiscal year 2004-2005. Further analysis indicates that, during the period from July 1, 2004 through December 31, 2004, 60 percent of the errors resulted from incomplete or incorrect data furnished to the payroll division from operating departments. The remaining errors were made in the payroll division, and the majority of those resulted from incorrect posting of correct information received from the operating departments. The payroll manual requires an audit of 5 percent of all payroll transactions each month by the payroll division supervisor. Sporadic attempts have been made to implement this procedure, and the required audits were completed in January, March, and October of 2004. Interviews with the clerks in the payroll division indicate that 80 percent of them are unfamiliar with the posting instructions in the payroll manual, and that they prefer to ask another employee if a question comes up, rather than consult the manual. If the error rate during the six-month period ending December 31, 2004 continues and there are 70 errors on payroll transactions between January 1, 2005 and February 1,2005, how many of these errors will be made by clerks in the payroll division? A. 42 B. 12 C. 28

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