In which of the following circumstances would the audit team most likely use attributes sampling?
A) Selecting customer accounts receivable for confirmation.
B) Selecting inventory items for verification of physical quantities.
C) Selecting purchase orders for indication of proper authorization.
D) Selecting additions to property, plant, and equipment during the year.

Question

Quizplus · Accepted Answer

Attributes sampling is typically used to test for the presence or absence of a certain characteristic or attribute in a population or sample. In this case, selecting purchase orders for indication of proper authorization involves testing for the presence or absence of proper authorization, making it suitable for attributes sampling. The other options involve testing for different types of errors or issues (confirmation of customer accounts receivable, verification of physical quantities, and additions to property, plant, and equipment), which may require different sampling methodologies.

In Which of the Following Circumstances Would the Audit Team