Reviewing account audits-standard deviation

Assignment Help Accounting Basics
Reference no: EM13116028

An accounting firm is trying to understand the capability of its process to review certain types of account audits. They know that on average it takes 10 hours to complete one of these audits, but due to variation, they promise the customer that it will be done in 15 hours. If the standard deviation of this audit process is 2.5 hours (and normality is assumed)

a) What is the capability of this process?

b) What is the percentage of audits that will take longer than 15 hours?

Reference no: EM13116028

Questions Cloud

Explain regression predicts for second predictor variable : The regression of Y on X predicts? When predicting Y, adding a second predictor variable to the first predictor variable X.
Journal entries and accounting concepts : It is now July 31st. You are continuing to advise Dr. Leo Krusack on basic accounting procedures. His practice had the following transactions during July.
Hedging exchange rate risk : Hedging Exchange Rate Risk. An importer in the United States is due to take delivery of silk scarves from Europe in 6 months. The price is fixed in euros.
What would the maximum total number of rfus present : you observe 50,000 RFUs in a 200 microliter aliquot from a G3-500ml culture. How many total RFUs will be present in a 15 mLsample? If you recover 80% of the fluorescing protein during purification, what would the maximum total number of RFUs prese..
Reviewing account audits-standard deviation : An accounting firm is trying to understand the capability of its process to review certain types of account audits. What is the percentage of audits that will take longer than 15 hours?
Construct confidence interval for true proportion : Construct a 98 percent confidence interval for the true proportion of ranch style homes. (Round your answers to 4 decimal places.)
Illustrate what is the speed of the resulting ball of clay : A 50.0 ball of clay traveling east at 8.00 collides and sticks together with a 40.0 ball of clay traveling north at 8.00. Illustrate what is the speed of the resulting ball of clay?
Journalize the selected transactions : Journalize the following selected transactions completed during the current fiscal year:
Current price of share-davidson company : Consider the stock of Davidson Company, which will pay an annual dividend of $2 one year from today. The dividend will grow at a constant annual rate of 5 percent

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the annual lease payments

Calculate the annual lease payments. (Remember, these payments are to be considered at the begining of each year - annuity due.

  Treasury stock purchase-reissue journal entry

Prepare journal entries (A,B,C) and show proper disclosure (C) to reflect the following treasury stock transactions showing how each is accounted for under the cost method. (show computation)

  Tax loss carryforward and valuation allowance

What are some examples of positive and negative evidence used to establish the need for a valuation allowance for a tax loss carryforward? What is the effect of the valuation allowance on the free cash flow forecast?

  Financial reporting which is based on coso framework

Prepare Friday's audit report that was submitted to Kim's board of directors 2011 and 2010 comparative financial statements. Kim is a public company.

  Assumptions-principles and constraints of accounting

Please help me explain the following concepts: A conclusion stating how you think sound financial reporting depends on principles, assumptions, and constraints. Refer to the U.S. GAAP in your response.

  Discretionary and committed fixed costs

Distinguish between discretionary and committed fixed costs.

  Analysis of business simulations

Do an Internet search to identify the types of games and business simulations that are available. Select one and provide a description and an analysis of it. Discuss the learning content objectives.

  Buying and selling division-allocation practice

There are various steps that can be used to reconcile the use of different approaches between the buying and selling divisions

  Budgeted volume-standard volume-overhead rate

Printers Inc. manufactures and sells a mid-volume color printer (MC) and a high-volume color printer (HC). Each MC requires 100 direct labor hours to manufacture, and each HC requires 150 direct labor hours.

  Journal entries of raptor corporation

On July 1, 2002, Raptor Corporation, a wholesaler of used robotic equipment, issued $7,500,000 of ten-year, 10% bonds at an effective interest rate of 12%, Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year o..

  Reporting and repairing damages

Discuss whether the fact that the library building is in the historic part of town has any role in determining how to record and report the damage and repairs to the library.

  Internet research of sole proprietorships

Conduct literature and internet research of sole proprietorships, partnerships, and corporations. Discuss the three business forms in terms of how they are formed, managed, and how they operate as business entities.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd