Question

Each of the below statements regarding attributes sampling is correct except:

Question 1 options:

	Attributes sampling can be used to select vendor accounts for confirmation to determine whether balances were misstated.
	Attributes sampling can be used to select invoices paid to determine whether payment was authorized.
	Attributes sampling can be used to select employee files to determine whether salary increases were approved.
	Attributes sampling can be used to select customer accounts to determine whether monthly statements were sent.

Answer 1

Option (a) is correct. Attributes sampling cannot be used to select vendor accounts for confirmation to determine whether balances were misstated. Attribute sampling is done to test whether company's internal controls are being followed or not.

Option (b) is incorrect. Attributes sampling can be used to select invoices paid to determine whether payment was authorized is right.

Option (c) is incorrect. Attributes sampling can be used to select employee files to determine whether salary increases were approved is right.

Option (d) is incorrect. Attributes sampling can be used to select customer accounts to determine whether monthly statements were sent.