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Attribute Sampling

Attribute Sampling

What Is Attribute Sampling?

Attribute sampling is a statistical cycle utilized in audit procedures that expects to dissect the qualities of a given population. This practice is many times used to test whether an organization's internal controls are accurately followed. Without the ability to depend on controls, it would be extremely challenging and incredibly exorbitant to conduct a significant audit.

How Attribute Sampling Works

Suppose an auditor needs to test the effectiveness of an organization's rule that purchases of more than $10 must be authorized with a purchase order. Since inspecting each vendor invoice more than $10 is much of the time not plausible, the auditor will take a sample. The size of the sample must be sufficiently large to give an accurate image of the whole population of purchase orders more than $10, however that precision is dependably a question of degree and must be tried. In looking at the sample, the auditor might discover that 5% of the vendor invoices more than $10 were not authorized by purchase order.

Then again, 5% might be considered acceptable. Since the auditor has taken a sample and couldn't look at the whole population of vendor invoices, they must do an extra analysis in light of the fact that any time a sample is taken, a phenomenon known as "sampling mistake" happens.

A sampling mistake happens when the values of the sample don't match those of the whole population from which the sample was taken. So on the off chance that extra analysis shows that the margin of mistake is 2.5%, a 5% resistance rate would be acceptable on the grounds that the confidence interval is 5%, plus or minus 2.5%, and the tolerable 3% rate falls inside that reach.

This 5% rebelliousness rate might be acceptable or not, contingent upon the rate the still up in the air to be a tolerable figure. Assuming that the auditor accepts a 3% rate is tolerable, 5% would subsequently have all the earmarks of being too high and would demonstrate that the organization's internal controls were not effective. In this scenario, extra investigation by the auditor would be essential. This data could likewise propose that extra controls are essential for what's in store.

Consider an election survey, where sample data indicated that 49% of those studied say they plan to vote for Candidate A, and 51% of those reviewed say they plan to vote for Candidate B. In this case, the 2.5% sampling margin of blunder is greater than the 2% differential between the figures, which would toss the veracity of the survey brings about question.

Attribute sampling is just significant assuming used to audit internal controls that are accurately planned and productively executed.

Types of Questions Asked in Attribute Sampling

Numerous things might be concentrated on utilizing attribute sampling. A partial rundown incorporates:

  • Does the shipment of goods generally precede billing?
  • Are goods just purchased from approved vendors?
  • Are credit sales made to consumers with approved credit?
  • Are checks endorsed by an authorized person?


  • Attribute sampling is utilized in audit procedures, dissecting the qualities of a given population.
  • The interaction includes taking samples of certain activities, for example, paying an invoice of a certain amount then, at that point, breaking down that cycle.
  • This statistical cycle decides if internal controls are being followed.