Question
The auditor for a large corporation routinely monitors cash disbursements. As part of this process, the auditor examines check request forms to determine whether they
The auditor for a large corporation routinely monitors cash disbursements. As part of this process, the auditor examines check request forms to determine whether they have been properly approved. Improper approval can occur in several ways. For instance, the check may have no approval, the check request might be missing, the approval might be written by an unauthorized person, or the dollar limit of the authorizing person might be exceeded. Suppose that the auditor selects a random sample of 625 checks that have been approved in the last month. The auditor selected a random sample of 625 checks and found that 22 were not properly approved. Conduct the appropriate hypothesis test to determine if the sample provides sufficient statistical evidence to conclude that the rate of improper approvals is less than 5 percent. Round final answer to four decimals.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started