When audit procedures have been completed for an attributes sampling application, the auditor must generalize from the sample to the population.Which of the following statements would be incorrect regarding this process?
A)The auditor would use an attributes sampling table to determine the computed upper exception rate.
B)If the sample size is not equal to those provided for in the attributes sampling evaluation tables, the auditor cannot use attribute sampling.
C)It would be wrong for the auditor to conclude that the population exception rate is exactly the same as the sample exception rate.
D)In selecting the table corresponding to the ARO, it should be the same as the ARO used for determining the initial sample size.

Question

Quizplus · Accepted Answer

The statement "If the sample size is not equal to those provided for in the attributes sampling evaluation tables, the auditor cannot use attribute sampling" is incorrect. The auditor can still use attribute sampling, but they would need to calculate their own sample size and use an appropriate statistical formula to determine the computed upper exception rate. The other statements are correct. The auditor would use an attributes sampling table to determine the computed upper exception rate (A). It would be wrong for the auditor to conclude that the population exception rate is exactly the same as the sample exception rate (C). In selecting the table corresponding to the ARO, it should be the same as the ARO used for determining the initial sample size (D).

When Audit Procedures Have Been Completed for an Attributes Sampling