Excel Audit Consultants (EAC) have engaged three audit trainees; O,
K and M. After three months, the audit supervisor notices that 3%,
5% and 4% of the accountants audited by O, K and M
respectively have some procedural errors. The supervisor had distributed the
accounts such that O audited 40%. K audited 30% and M
audited 30% of the accounts.
Required:
(i) The proportion of audited accounts with procedural errors. (6 marks)
(ii) The probability that an account with an error is audited by either K
or M.