Jerry Tim is examining an important internal control in the audit of Langly Company. Inpast audits, deviations from this control have been observed at a minimal rate (less than 0.1percent); however, because the account balance affected by this control is highly susceptibleto fraud, it is important that Tim obtain a high level of assurance that deviations occur at nohigher than a predetermined (low) rate. Which of the following sampling methods wouldTim most likely use to evaluate this control?a. Attributes sampling.b. Discovery sampling c. Sequential sampling.d. Statistical sampling.

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle.
Section: Chapter Questions
Problem 23CYBK
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Jerry Tim is examining an important internal control in the audit of Langly Company. In
past audits, deviations from this control have been observed at a minimal rate (less than 0.1
percent); however, because the account balance affected by this control is highly susceptible
to fraud, it is important that Tim obtain a high level of assurance that deviations occur at no
higher than a predetermined (low) rate. Which of the following sampling methods would
Tim most likely use to evaluate this control?
a. Attributes sampling.
b. Discovery sampling

c. Sequential sampling.
d. Statistical sampling.

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