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An auditor randomly selects 20 accounts receivable from the 500 accounts of a certain firm. The auditor lists the amount of each account and checks to see whether the underlying documents are in compliance with stated procedures. The data are as follows (amounts in dollars, Y= yes, N=no ): (a) Estimate the total accounts receivable for the 500 accounts of the firm and place a bound on the error of estimation. Do you think that the average account receivable for the firm exceeds $250 ? Why? (b) Estimate the proportion of the firm's accounts that fail to comply with stated procedures and place a bound on the error of estimation. Do you think the proportion of accounts that comply with stated procedures exceeds 80% ? Why?.

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An auditor randomly selects 20 accounts receivable from the 500 accounts of a certain firm. The auditor lists the amount of each account and checks to see whether the underlying documents are in compliance with stated procedures. The data are as follows (amounts in dollars, Y= yes, N=no ): (a) Estimate the total accounts receivable for the 500 accounts of the firm and place a bound on the error of estimation. Do you think that the average account receivable for the firm exceeds $250 ? Why? (b) Estimate the proportion of the firm's accounts that fail to comply with stated procedures and place a bound on the error of estimation. Do you think the proportion of accounts that comply with stated procedures exceeds 80% ? Why?

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An auditor randomly selects 20 accounts receivable from the .pdf

  • 1. An auditor randomly selects 20 accounts receivable from the 500 accounts of a certain firm. The auditor lists the amount of each account and checks to see whether the underlying documents are in compliance with stated procedures. The data are as follows (amounts in dollars, Y= yes, N=no ): (a) Estimate the total accounts receivable for the 500 accounts of the firm and place a bound on the error of estimation. Do you think that the average account receivable for the firm exceeds $250 ? Why? (b) Estimate the proportion of the firm's accounts that fail to comply with stated procedures and place a bound on the error of estimation. Do you think the proportion of accounts that comply with stated procedures exceeds 80% ? Why?