In short
Attribute sampling is a statistical method that estimates the rate of occurrence of a characteristic in a population, used mainly in tests of controls to estimate the rate of deviation from a control.
Key takeaways
- Sample size depends on the tolerable deviation rate, the expected deviation rate and the desired confidence level.
- The result is compared using the upper deviation limit, not the sample rate.
- The nature of each deviation is also considered, for example whether it suggests fraud.
Where it's tested
AUD: Audit Sampling — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In a test of controls, the tolerable deviation rate is 5% and the computed upper deviation rate based on the sample is 6.2%. What should the auditor conclude?