{"id":1153,"date":"2021-02-10T23:58:48","date_gmt":"2021-02-10T23:58:48","guid":{"rendered":"https:\/\/alminawi.com\/?p=488"},"modified":"2021-02-10T23:58:48","modified_gmt":"2021-02-10T23:58:48","slug":"audit-sampling-as04-attribute-sampling","status":"publish","type":"post","link":"https:\/\/e.americanpro.org\/?p=1153","title":{"rendered":"Audit Sampling: Episode 04, Attribute Sampling"},"content":{"rendered":"<ul>\n<li data-start=\"52\" data-end=\"405\">\n<p data-start=\"54\" data-end=\"405\"><em data-start=\"54\" data-end=\"74\">Attribute sampling<\/em> is a statistical method used by internal auditors to test whether internal controls are working effectively. It focuses on the <strong data-start=\"202\" data-end=\"225\" data-is-only-node=\"\">presence or absence<\/strong> of a specific attribute (or characteristic) in a population\u2014such as whether a document was properly authorized or whether a transaction includes required supporting documentation.<\/p>\n<\/li>\n<li data-start=\"407\" data-end=\"1283\">\n<p data-start=\"409\" data-end=\"444\">The <strong data-start=\"413\" data-end=\"434\">sampling road map<\/strong> includes:<\/p>\n<ul data-start=\"447\" data-end=\"1283\">\n<li data-start=\"447\" data-end=\"565\">\n<p data-start=\"449\" data-end=\"565\"><strong data-start=\"449\" data-end=\"479\">Set the Sampling Objective<\/strong> \u2013 Define what control you are testing (e.g., are purchase orders properly approved?).<\/p>\n<\/li>\n<li data-start=\"568\" data-end=\"720\">\n<p data-start=\"570\" data-end=\"720\"><strong data-start=\"570\" data-end=\"614\">Define the Attribute and Occurrence Rate<\/strong> \u2013 Identify what qualifies as a \u201cpass\u201d or \u201cfail\u201d (e.g., a purchase order with manager approval is a pass).<\/p>\n<\/li>\n<li data-start=\"723\" data-end=\"859\">\n<p data-start=\"725\" data-end=\"859\"><strong data-start=\"725\" data-end=\"752\">Identify the Population<\/strong> \u2013 This is the total group of items eligible for testing, such as all purchase orders over the fiscal year.<\/p>\n<\/li>\n<li data-start=\"862\" data-end=\"953\">\n<p data-start=\"864\" data-end=\"953\"><strong data-start=\"864\" data-end=\"890\">Select Sampling Method<\/strong> \u2013 Use methods like random, systematic, or stratified sampling.<\/p>\n<\/li>\n<li data-start=\"956\" data-end=\"1075\">\n<p data-start=\"958\" data-end=\"1075\"><strong data-start=\"958\" data-end=\"983\">Calculate Sample Size<\/strong> \u2013 Based on desired confidence level, tolerable deviation rate, and expected deviation rate.<\/p>\n<\/li>\n<li data-start=\"1078\" data-end=\"1154\">\n<p data-start=\"1080\" data-end=\"1154\"><strong data-start=\"1080\" data-end=\"1104\">Select Sample &amp; Test<\/strong> \u2013 Apply the test to each item and record results.<\/p>\n<\/li>\n<li data-start=\"1157\" data-end=\"1283\">\n<p data-start=\"1159\" data-end=\"1283\"><strong data-start=\"1159\" data-end=\"1179\">Evaluate Results<\/strong> \u2013 Compare actual deviation rate to the tolerable rate to decide whether the control can be relied upon.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"1285\" data-end=\"1715\">\n<p data-start=\"1287\" data-end=\"1715\"><em data-start=\"1287\" data-end=\"1296\">Example<\/em>: An internal auditor wants to test the control requiring managerial approval for expense reimbursements over $1,000. The population consists of 2,000 such reimbursements from the past year. Using attribute sampling, the auditor randomly selects 80 items. If 3 are missing approvals, and the <strong data-start=\"1588\" data-end=\"1622\" data-is-only-node=\"\">tolerable deviation rate is 4%<\/strong>, the observed 3.75% (3\/80) would be acceptable, and the control can be considered effective.<\/p>\n<\/li>\n<li data-start=\"1717\" data-end=\"1898\" data-is-last-node=\"\">\n<p data-start=\"1719\" data-end=\"1898\" data-is-last-node=\"\">Attribute sampling allows internal auditors to form a reliable conclusion about a control\u2019s operation without examining every item, supporting efficient, evidence-based assurance<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Attribute sampling is a statistical method used by internal auditors to test whether internal controls are working effectively. It focuses on the presence or absence of a specific attribute (or characteristic) in a population\u2014such as whether a document was properly authorized or whether a transaction includes required supporting documentation. The sampling road map includes: Set [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1033,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-internal-audit"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/e.americanpro.org\/wp-content\/uploads\/2021\/03\/25-e1750016538104.avif","_links":{"self":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts\/1153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1153"}],"version-history":[{"count":0,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts\/1153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/media\/1033"}],"wp:attachment":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}