Learn the most appropriate response when an internal auditor using discovery sampling finds a noncompliant item before completing their analysis. Get expert advice for acing the CIA Part 2 exam.
Table of Contents
Question
An internal auditor is using the discovery sampling technique. She has not completed the analysis, but she already discovered that at least one item failed to comply with the required standard. Which of the following is the most appropriate response?
A. The auditor must test the remaining items to ensure due professional care.
B. The noncompliant item is an indicator that the auditor should select a different sampling methodology.
C. The noncompliant item is an indicator that the auditor should increase the sample size.
D. The auditor may draw a conclusion based on the singular noncompliant item.
Answer
D. The auditor may draw a conclusion based on the singular noncompliant item.
Explanation
Discovery sampling is a non-statistical sampling technique used when the auditor expects few or no deviations in the population. The sample size is not fixed in advance. Instead, items are selected randomly one at a time and evaluated until either a noncompliant item is found or the entire population has been tested.
If a noncompliant item is discovered at any point, the auditor can immediately conclude that the control or process is not functioning as intended. There is no need to test the remaining items in the population (Choice A) since the single deviation is sufficient evidence of noncompliance.
The discovery of a noncompliant item does not necessarily indicate that the auditor should select a different sampling methodology (Choice B) or increase the sample size (Choice C). These actions would be more appropriate if statistical sampling was being used and the acceptable deviation rate was exceeded. However, with discovery sampling, a single deviation is enough to draw a conclusion.
Therefore, when using discovery sampling, an internal auditor may stop testing and conclude that the control or process is not functioning properly based on finding a single noncompliant item, even before completing the full analysis.
IIA-CIA-Part2 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the IIA-CIA-Part2 exam and earn IIA-CIA-Part2 certification.