An Internal Auditor Is Checking the Accuracy of a Computer-Printed

Multiple Choice

An internal auditor is checking the accuracy of a computer-printed inventory listing to determine whether the total dollar value of inventory is significantly overstated. Because there is no time or resources to check all items in the warehouse, a sample of inventory items must be used. If the sample size is fixed, which of the following would be the most accurate sampling approach?

A) Select those items that are most easily inspected.
B) Employ simple random sampling.
C) Sample so that the probability of a given inventory item being selected is proportional to the number of units sold for that item.
D) Sample so that the probability of a given inventory item being selected is proportional to its book value.