Attributes Sampling

Question 1

What should an auditor consider when determining the sample size of tests of controls?

Answer 1

tolerable deviation rate
likely rate of deviation
allowable risk of assessing control too low

*assumes the population is very large; increase in population would have a negligible effect

Question 2

Attributes Sampling

Answer 2

used to measure the proportion of characteristic in a population

typically used for tests of controls (eg. inspecting time cards for proper approval by supervisors) and substantive tests of transactions