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An internal auditor wishes to determine whether the finished goods perpetual inventory records are being properlyupdated for completed production. To accomplish this, the auditor traces inventory quantity and cost records fromproduction reports to perpetual inventory records, using an appropriate sample size based on a 95% confidence level,estimated error rate of 4%, and desired precision of ±2%. If the error rate in the sample is, as expected, 4%, and 2,000production reports were posted to perpetual inventory records during the year, the auditor can be 95% sure that thenumber incorrectly posted wasAt least 100.A.At least 80.B.Between 60 and 140.C.Between 40 and 120
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