Definition of Attribute sampling:
Let's say an auditor wants to test the effectiveness of a company's rule that purchases of more than $10 must be authorized with a purchase order. Since examining every vendor invoice over $10 is often not feasible, the auditor will take a sample. The size of the sample must be large enough to provide an accurate picture of the entire population of purchase orders over $10, though that accuracy is always a matter of degree and must be tested. In examining the sample, the auditor may discover that 5% of the vendor invoices over $10 were not authorized by purchase order.
Attribute sampling is a statistical process used in audit procedures that aims to analyze the characteristics of a given population. This practice is often used to test whether or not a company's internal controls are being correctly followed. Without the ability to rely on controls, it would be very difficult and exceedingly costly to conduct a meaningful audit.
See acceptance sampling.
How to use Attribute sampling in a sentence?
- This statistical process helps determine whether internal controls are being followed. .
- The process involves taking samples of certain activities, such as paying an invoice of a certain amount then analyzing that process.
- Attribute sampling is used to audit procedures, helping analyze the characteristics of a given population.
Meaning of Attribute sampling & Attribute sampling Definition