An auditor is examining an important internal control in his audit of ABC Company.Because the account balance affected by this control is highly susceptible to fraud,he will reject the sample if even one deviation is discovered.What type of sampling plan should he use?
A) Attributes sampling.
B) Discovery sampling.
C) Sequential sampling.
D) Statistical sampling.

Question

Quizplus · Accepted Answer

Discovery sampling is used when the auditor is looking for a very low rate of occurrence, such as fraud, and will reject the sample if even one deviation is found.

An Auditor Is Examining an Important Internal Control in His