Question

The expected population exception rate is 3% for the accounts receivable posting processes. If the auditor has established a 5% tolerable rate, the auditor would use which sampling plan for testing the actual exception rate?

A. Difference or mean-per-unit estimation.
B. Attribute.
C. Stratified.
D. Discovery.

Answer 1

The correct sampling plan for an auditor testing the actual exception rate given an expected population exception rate of 3% and a tolerable rate of 5% is Attribute sampling.

Step-by-step explanation:

Attribute sampling is the correct sampling plan in the scenario where an auditor is testing the actual exception rate against an expected population exception rate and a tolerable rate.

With an expected rate of 3% and a tolerable rate of 5%, attribute sampling will allow the auditor to determine if the process's exception rate is within acceptable limits. This methodology is used when an auditor wants to estimate the rate of occurrence for certain characteristics (or attributes) within a population, in this case, errors in the accounts receivable posting process.