A Niceville vendor-file audit sampled 8 of 32 files and found 1 exceptions. What exception rate should be reported for the sample?
Correct Answer
C) 12.5%
Exception rate for the sample equals exceptions divided by files sampled.
Why This Is the Correct Answer
Exception rate for the sample equals exceptions divided by files sampled.
Why the Other Options Are Wrong
Option A: 3.1%
3.1% is below the supported result for vendor audit exception rate; it likely uses the wrong base, period, or account bucket.
Option B: 25.0%
25.0% is above the supported result for vendor audit exception rate; it likely adds an unsupported amount or compares the wrong financial base.
Option D: 87.5%
87.5% is above the supported result for vendor audit exception rate; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Vendor Audit Rate drawer for Controller Reviews: label exception before counting dollars.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Vendor Setup and Master File Controls; use the stated business record or control rule to verify the answer.
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