Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The objective of most audits by independent auditors is to determine whether or not the financial statements of the auditor's client conform to generally accepted

The objective of most audits by independent auditors is to determine whether or not the financial statements of the auditor's client conform to generally accepted accounting principles. Suppose an auditor decided to test the operation of the accounts payable/cash disbursement system of Frederic's Clothing. A sample of checks written by the company is examined for propriety. For each canceled check there was a voucher jacket included with supporting documents. According to company policy, the number of checks without supporting documentation should be minimized. The auditor wants to estimate the proportion of checks without supporting documentation. What sample size would be needed to obtain a 90% confidence interval on the proportion of checks without documentation that has a margin of error of .02? Assume that an initial sample of size 150 was taken and that 12 were found not to have documentation.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to Analysis

Authors: William R. Wade

4th edition

132296381, 978-0132296380

More Books

Students also viewed these Mathematics questions