Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2026 - Free CPA Practice Questions and Study Guide

Choosing variables sampling over attributes sampling is most appropriate when the goal is to estimate a numeric quantity, such as the dollar amount of a financial statement item. Variables sampling allows auditors to derive statistical estimates regarding the total value of a population based on a sample. This method is ideal for assessing amounts, such as inventory values, because it helps determine the average or total dollar value with a certain confidence level.

In contrast, attributes sampling is primarily used to evaluate the effectiveness of controls or to determine whether certain attributes or characteristics are present in a population, typically expressed as a percentage. For instance, it may assess whether a certain percentage of transactions are compliant with required procedures or controls.

While discovering misstatements in records and verifying pricing of inventory items could also involve sampling methods, these tasks can often be achieved with attributes sampling, which focuses on compliance rather than value estimation. However, for estimating the total dollar amount of inventory, which necessitates numeric evaluation, variables sampling is clearly the preferred choice.