An auditor examining inventory most likely would use variables sampling rather than attributes sampling to: B estimate whether the dollar amount of inventory is reasonable.
Variables sampling refers to the process used to predict the value of a particular variable within a population. For instance, a limited sample size can be used to calculate the average accounts receivable balance as well as a statistical derivation of the minus or plus range of the value of the total receivables that is under review.
The statement given in option B is a correct answer because variable sampling deals with dollar amounts or quantities and accordingly examing inventory involves the dollar amount of inventory. In contrast, attributes sampling addresses deviation rates with respect to various controls.
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