Which of the following factors would indicate that probability-proportional-to-size sampling should be used rather than other statistical sampling techniques?
A)There is a book value for every item in the population.
B)There is a low expected misstatement rate in the population.
C)The auditors wish to obtain an estimate of the amount of misstatement in the population.
D)The book value of the population is large.

Question

Quizplus · Accepted Answer

Probability-proportional-to-size sampling is particularly useful when there is a low expected misstatement rate, as it allows for more efficient sampling by focusing on larger items that are more likely to contain significant misstatements.

Which of the Following Factors Would Indicate That Probability-Proportional-To-Size Sampling