An Auditor Is Performing an Audit of a Drilling Machine

question 90

Multiple Choice

An auditor is performing an audit of a drilling machine that produces 100 pieces a day and that is showing improved quality. Which of the following rules should be used for determining the proper sample size for a fixed level of confidence?

• A) The moving average should be calculated.
• B) The sample size should be decreased as the quality improves.
• C) The AQL of the raw material should be used.
• D) A 10% sample size should be used, regardless of the change in quality.

---

Definitions:

Distribution Point

A location from which goods are distributed to consumers or retailers, acting as an intermediary node in the supply chain.

Mathematical Technique

A method or procedure employed in solving mathematical problems or in modeling real-world phenomena using mathematical concepts.

Labour Cost

The total expenditure incurred by employers to compensate the workforce, including wages, benefits, and any other employee-related expenses.

Per Unit

A term used to define the cost, price, or quantity relative to a single unit of a product or service.