Which of the following is not an advantage of probability-proportional-to-size (PPS) sampling? A) PPS systematic sample selection automatically identifies any item that is individually significant if its value is less than an upper monetary cutoff. B) PPS sampling, if the auditor expects no misstatements, will usually result in a smaller sample size than under classical variables sampling. C) PPS sampling automatically results in a stratified sample. D) It is generally easier to use than classical variables sampling. E) The size of a PPS sample is not based on any measure of the estimated variation of audit values.

Question

Quizplus · Accepted Answer

PPS sampling identifies individually significant items if their value is greater than an upper monetary cutoff, not less.

Which of the Following Is Not an Advantage of probability-Proportional-To-Size