Auditors use attributes sampling in assessing the effectiveness of a client's internal controls to determine
A) the extent to which internal controls are operating as intended to prevent or detect misstatements.
B) the degree of inherent risk associated with various account balances or classes of transactions.
C) the degree of risk present in the client's business environment.
D) the accuracy of the client's account balances or classes of transactions.

Question

Quizplus · Accepted Answer

Attributes sampling is used by auditors to assess the effectiveness of a client's internal controls. The primary purpose of attributes sampling is to determine the extent to which internal controls are operating as intended to prevent or detect misstatements. This helps the auditor to determine the level of reliance that can be placed on the client's internal controls. Attributes sampling does not directly assess the accuracy of the client's account balances or classes of transactions (choice D), nor does it assess the degree of inherent risk or risk present in the client's business environment (choices B and C).

Auditors Use Attributes Sampling in Assessing the Effectiveness of a Client's