Most corporations use external accounting and auditing firms for performing audits on their financial records. In medium to large businesses there may be a very large number of accounts to audit, so auditors often use a technique called audit sampling, in which a random sample of accounts are selected for auditing and the results used to draw conclusions about the organization€™s accounting practices. Table 7E.18 presents the results of an audit sampling process, in which 25 accounts were randomly selected and the number of posting errors found. Set up a control chart for nonconformities for this process. Is this process in statistical control?

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TABLE 7E.18 Audit Sampling Data for Exercise 7.64 Number of Number of Account Posting Errors Account Pasting Errors 0 14 15 16 17 18 19 20 0 0 0 0 24 12 13