Jones, CPA, believes the industry-wide deviation rate of client billing errors is 3% and has established a tolerable deviation rate of 5%. In the review of client invoices, Jones should use
A) Discovery sampling.
B) Attributes sampling.
C) Stratified sampling.
D) Variables sampling.

Question

Quizplus · Accepted Answer

Attributes sampling is best suited for this scenario, as Jones wants to determine whether the incidence of the billing error falls within an acceptable range or not. Attributes sampling focuses on identifying the presence or absence of a particular attribute (in this case, billing errors) within the population, which aligns with Jones' objectives. The sample size and the number of errors found will determine whether a significant deviation exists from the tolerable rate.

Jones, CPA, Believes the Industry-Wide Deviation Rate of Client Billing