Question

Discovery sampling is equivalent to an attributes sampling plan with a very low deviation rate. Explain the concept of discovery sampling and its implications for attributes sampling.

Answer 1

Discovery sampling is a technique used in auditing to identify issues or errors in a population. It involves randomly selecting items from a population and examining them thoroughly. When used with a very low deviation rate, it implies the auditor is looking for rare occurrences or exceptions.

Step-by-step explanation:

Discovery sampling is a sampling technique used in auditing to identify potential issues or errors in a population. It involves randomly selecting items from a population and examining them thoroughly to uncover any anomalies or deviations. In attributes sampling, a very low deviation rate means that the population being sampled is expected to have a very small percentage of items with the attribute being tested. Therefore, when a discovery sampling technique is used with a very low deviation rate, it implies that the auditor is looking for rare occurrences or exceptions within the population.