Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program?
A) Review sales transactions for large and unreasonable amounts.
B) Observe whether the duties of the accounts receivable clerk are separate from handling cash.
C) Examine a sample of duplicate sales invoices for credit approval by the credit manager.
D) Review the aged schedule of accounts receivable to determine if receivables from officers are included.

Question

Quizplus · Accepted Answer

Attributes sampling is used when the auditor wants to draw a conclusion about the presence or absence of a specific attribute in a population. Examining a sample of duplicate sales invoices for credit approval by the credit manager involves checking for the presence of a specific attribute (i.e. credit approval) and therefore, attributes sampling is an appropriate method to use for this procedure. A) is an example of substantive testing, B) involves observing a control, and D) involves testing for completeness, which may be better suited for other sampling methods.

Attributes Sampling Would Be an Appropriate Method to Use on Which