3. A bank in Ottawa is considering a survey of its customers for the purpose ofestimating the mean number of checks written per customer in each month. A sampleof 360 customers was selected. The following sample values were recorded: = = 33.4and s = 11.2.(a) Provide a 90% confidence interval estimate for the mean number ofchecks written per customer in each month and interpret the estimate.1(b) Suppose a mistake was made in counting the number of customersthat was surveyed, and the actual sample size was 36 instead of 360. Recomputethe 90% confidence interval estimate, and compare it to the estimate developedin part (a). Why are the estimates different even though the sample mean andstandard deviation did not change?(c) The bank is interested in opening another branch in Ottawa. Itsdemographic studies indicate that the branch will attract about 2000 customerswho will have checking accounts. The bank is attempting to prepare a system thatwould process the checks these customers would write. Baed on your estimationin part b, would it be reasonable for them to install a system that would process65000 checks per month? Explain your answer and the logic that led you to thisanswer.

Answered: Image /qna-images/answer/9467ef2e-a879-4576-b84a-a0465114c684.jpg

3. A bank in Ottawa is considering a survey of its customers for the purpose of estimating the mcan number of checks written per customer in each month. A sample of 360 customers was selected. The following sample values were recorded: # = 33.4 and s = 11.2. (a) Provide a 90% confidence interval estimate for the mean number of checks written per customer in each month and interpret the estimate.

3. A bank in Ottawa is considering a survey of its customers for the purpose of estimating the mcan number of checks written per customer in each month. A sample of 360 customers was selected. The following sample values were recorded: # = 33.4 and s = 11.2. (a) Provide a 90% confidence interval estimate for the mean number of checks written per customer in each month and interpret the estimate.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 28RQSC

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. The true proportion of accounts receivable with some kind of error is 8 percent for Moby Group. If an auditor randomly samples 100 accounts receivable, a) is it acceptable to use the normal approximation to estimate the probability that fewer than two will contain errors? Explain your reasoning. b) what is the mean and standard deviation of errors? c) assume the auditor takes a sample of 150, what is the probability that less than 5 will contain errors?
In the month of November, Lily Company Inc. wrote checks in the amount of $10,350. In December, checks in the amount of $11,782 were written. In November, $9,990 of these checks were presented to the bank for payment, and $10,848 in December.What is the amount of outstanding checks at the end of November? At the end of December?
Imagine that you are the financial analyst for XYZ Company. The organization is trying to determine why the collection of accounts receivable accounts has decreased by 30% over the last three months of this year. Would you utilize horizontal or vertical analysis to determine the decrease in account receivable collection? Explain your answer
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In the month of May, Fredricksburg Company Inc. wrote checks in the amountof $64,750. In June, checks in the amount of $88,606 were written. In May,$59,276 of these checks were presented to the bank for payment, and $76,181in June. What is the amount of outstanding checks at the end of June?a. $12,425b. $5,474c. $17,899d. $24,850
Give typing answer with explanation and conclusion A company has just dropped $125,000 worth of checks into the mail on Wednesday and have forecasted that the distribution pattern for such a batch of checks is as follows: Clear in 1 business day = 10% Clear in 2 business days = 45% Clear in 3 business days = 30% Clear in 4 business days = 15% Given this information, determine the amount of checks clearing next Monday.
An auditor is going to choose a sample of accounts receivable balances at year end to test and has determined the appropriate sampling interval to be 4 with a random start of the second balance in the list. Presented below are the first 10 accounts in the list (in order). Determine the first 2 account balances (including the random start) that will be sampled and tested using the sampling interval. Beads Galore $678 Beads N Such $5,125 Island Time Beads $235 Premier Beads $4,020 Regal Beads $567 Seattle Bead Xchange $321 Shipwreck Beads $3,502 The Bead Place $870 The Bead Place Too $450 The Bead Place Too Phoenix $125
In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…
In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…
In relation to your audit of the cash in bank of your client, MEG Company, the following information were gathered: As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000. The deposit in transit for May is P10,000; for June, P15,000. The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000. Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bank loan. Debit memos total to P500 for May and P2,000 for June. A May book disbursement for P1,500 was not recorded. The correction was made in June. A June collection for P4,500 was not recorded. No correction was made. Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by your client for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month. June book debits – P150,000;…
In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…