Attributes Sampling

Question 1

List the eight steps in attributes sampling plan.

Answer 1

1. )Identify sampling objective.
2. )Define what constitutes an occurrence.
3. )Identify relevant population.
4. )Determine sampling method.
5. )Determine sample size.
6. )Select the sample.
7. )Evaluate results.
8. )Document sampling procedures.

Question 2

List the two sampling approaches acceptable for statistical sampling applications.

Answer 2

Random

Systematic

Question 3

Define “random sampling.”

Answer 3

Sampling methodology where each item in the population has the same probability of being selected

Question 4

Define “systematic sampling.”

Answer 4

Sampling methodology whereby every nth item in the population is chosen as part of the sample (usually with a random starting point)

Question 5

List the two sampling approaches normally associated with judgmental (nonstatistical) sampling applications.

Answer 5

Block

Haphazard

Question 6

Define “block sampling.”

Answer 6

Sampling methodology where a group of contiguous items are selected (e.g., selecting all transactions for the month of June)

Question 7

Define “haphazard sampling.”

Answer 7

Sampling methodology where items are selected arbitrarily with no conscious biases

Question 8

List the factors that directly relate to sample size.

Answer 8

1. )Expected error rate

2. )Population size—not explicitly considered in attributes sampling

Question 9

List the factors that are inversely related to sample size.

Answer 9

1. )Tolerable error rate
2. )Risk of overreliance; Type II error
3. )Risk of underreliance

Question 10

What is the formula for the observed deviation rate for the sample?

Answer 10

(No. errors in the sample) / Sample size

Question 11

List the three factors, as indicated by AICPA tables, that determine sample size for an attributes sampling application.

Answer 11

1. )Expected error rate (related to the variation in population)
2. )Tolerable error rate (related to precision)
3. )Risk of over-reliance (Type II error rate)