Question
You have been assigned to test CBAs internal controls over credit authorization. You have determined that there are 20,000 sales invoices processed during the year.
You have been assigned to test CBAs internal controls over credit authorization. You have determined that there are 20,000 sales invoices processed during the year. The parameters given to you by the audit manager are: 95% confidence that no more than 5% of the sales invoices were not approved (deviations). Based on last years audit, it is estimated that approximately 1% of sales invoices deviate from the internal control being tested. You can accepted a tolerable deviation rate of 5%. After selecting your sample, you discover five possible deviations. The deviations include, 3 with no approval, 1 to a customer still in the credit process and 1 invoice that was void
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