Attribute 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 amounts receivable from officers are included.

Question

Quizplus · Accepted Answer

Attribute sampling is used to test the occurrence or non-occurrence of a specific attribute within a population. This makes it appropriate for testing the credit approval of sales invoices by the credit manager, which is an attribute that can be tested for compliance. Option A requires a substantive audit procedure, Option B involves observation and Option D requires a test of details audit procedure.

Attribute Sampling Would Be an Appropriate Method to Use on Which