The auditors expect a population deviation rate of billing errors of two percent,and have established a tolerable rate of five percent.The sampling approach most likely to be used is:
A)Attributes sampling.
B)Stratified sequential sampling.
C)Discovery sampling.
D)None,as sampling does not seem appropriate in this situation.

Question

Quizplus · Accepted Answer

Attributes sampling is appropriate for situations where the auditor is testing for the presence or absence of a particular attribute (in this case, a billing error). Given the population deviation rate and tolerable rate, attributes sampling would allow the auditor to make a binary determination (error present or absent) for each selected item in the sample.

The Auditors Expect a Population Deviation Rate of Billing Errors