Probability Proportionate to Size (PPS) sampling is _______.
A)an approach that uses attribute sampling theory to express a conclusion in dollar amounts
B)an approach that uses non-statistical sampling theory to express a conclusion in dollar amounts
C)rarely used in auditing, due to its prohibitive cost
D)required to be used in the auditing of publicly traded companies

Question

Quizplus · Accepted Answer

PPS sampling, or Probability Proportionate to Size sampling, is a statistical sampling technique where the probability of selecting a unit is proportional to its size. This method is often used in auditing because it allows auditors to focus on larger items that have a greater potential for causing material misstatements, thus expressing conclusions in terms of dollar amounts.

Probability Proportionate to Size (PPS) Sampling Is _______