Certified Internal Auditor (CIA) Practice Test

What is the main focus of attribute sampling in an audit?

1. Confirming the monetary value of an account.

2. Determining compliance with specific criteria.

3. Appraising overall efficiency in operations.

4. Identifying errors in financial statements.

The correct answer is: Determining compliance with specific criteria.

The main focus of attribute sampling in an audit is to determine compliance with specific criteria. This technique is utilized by auditors to assess whether the characteristics of a sample meet predetermined attributes or standards, which could include internal control procedures, regulatory requirements, or specific performance metrics. By evaluating a smaller segment of data against these criteria, auditors can make inferences about the compliance level across the entire population. This approach is especially useful in situations where the auditor is not as concerned with the monetary value of transactions but rather with the presence or absence of certain attributes, such as authorization, approval, or adherence to procedural guidelines. It helps in forming conclusions about the effectiveness of internal controls and compliance risk within the organization without the need to review every single transaction. The other options do not align with the primary goal of attribute sampling. For instance, confirming the monetary value of an account typically involves substantive testing rather than attribute sampling, which focuses on compliance. Appraising overall efficiency in operations is broader than just compliance checks, and identifying errors in financial statements pertains more to substantive testing techniques rather than the specific focus of attribute sampling.