A test of balance procedure is being performed on the spare parts inventory listing.The listing consists of 10 items that equal or exceed performance materiality and 55 items that are less than materiality.What would be an appropriate sampling approach in this case?
A)Select a randomly sample from all 65 items contained in the inventory list.
B)Select a small sample from 10 items over materiality and a larger sample from the remaining 55 items.
C)Test all 10 items at or above materiality,then select a random sample from the remaining 55 items.
D)Test all 10 items at or above materiality only,as the remaining items are each immaterial.

Question

Quizplus · Accepted Answer

Since the test of balance procedure is being performed on the spare parts inventory listing, it is important to ensure that items that equal or exceed performance materiality are tested. Therefore, all 10 items that equal or exceed performance materiality should be tested. For the remaining 55 items, a random sample should be selected to ensure that they are also tested. This will provide a representative sample of the inventory listing and ensure that all items, including those less than materiality, are tested. Therefore, option C is the best option.

A Test of Balance Procedure Is Being Performed on the Spare