Auditors use a technique called discovery sampling in which a random sample of items is inspected. If any defects are found, the entire lot of items sampled is subjected to 100 percent inspection.
a. Draw an OC curve for the case where a sample of 15 credit accounts will be inspected out of a total of 8,000 accounts.
b. Draw an OC curve for the case where 150 accounts out of 8,000 accounts will be examined.
c. Draw the AOQ curve for the preceding case, and estimate the AOQL.