IIA-CIA-PART2 · Question #170
An internal auditor for a regional bank suspects that the head of commercial lending has been granting loans without the required collateral Which of the following sampling techniques will be most…
The correct answer is D. Discovery sampling. Discovery sampling is most effective for investigating the auditor's suspicion that the head of commercial lending has been granting loans without the required collateral. This sampling technique is designed to detect at least one occurrence of a specific characteristic (in…
Question
An internal auditor for a regional bank suspects that the head of commercial lending has been granting loans without the required collateral Which of the following sampling techniques will be most effective for investigating the auditor's suspicion?
Options
- AVariables sampling
- BDollar-unit sampling
- CJudgmental sampling
- DDiscovery sampling
How the community answered
(24 responses)- A4% (1)
- B8% (2)
- C13% (3)
- D75% (18)
Explanation
Discovery sampling is most effective for investigating the auditor's suspicion that the head of commercial lending has been granting loans without the required collateral. This sampling technique is designed to detect at least one occurrence of a specific characteristic (in this case, loans without collateral) within a population. It is particularly useful for identifying fraud or non- compliance with specific policies and procedures. Discovery sampling focuses on finding exceptions, making it suitable for the auditor's investigation into potential misconduct.
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