Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 95

Which statistical sampling approach would an internal auditor typically utilize if she wishes to test for fraud and the expected deviation rate is very low?

Answer options

• A. Stratified sampling.
• B. Attribute sampling.
• C. Discovery sampling.
• D. Haphazard sampling.

Correct answer: C

Explanation

Discovery sampling is the correct choice because it is specifically designed to identify rare occurrences of fraud, making it suitable when the expected deviation rate is low. Other methods, like stratified and attribute sampling, are not as effective for uncovering infrequent fraud cases, and haphazard sampling lacks a structured approach for identifying anomalies.