Question

In selecting a sample of items for attributes testing, an auditor must consider the confidence level factor, the desired precision, and the

A. Recorded monetary amount of the population.
B. Sampling interval.
C. Standard deviation in the population.
D. Expected occurrence rate.

Answer 1

In attributes testing, an auditor considers the desired confidence level, the desired precision, and the expected occurrence rate as critical factors when selecting a sample.

Step-by-step explanation:

In attributes testing, an auditor must consider several important factors when selecting a sample.

These include the desired confidence level, which represents how sure the auditor is that the population attributes fall within a specified range; the desired precision, which is the allowable error in the estimate; and the expected occurrence rate, which is the rate at which the auditor expects to find errors or deviations in the population being audited.

While the recorded monetary amount of the population, the sampling interval, and the standard deviation in the population are important considerations in other types of sampling, for attributes sampling, it is the expected occurrence rate (Option D) that must be considered alongside the confidence level and precision.