The PPS (probability proportional to size) sampling technique is such that _______.
A) the probability that a particular sampling unit will be chosen in the sample is inversely proportionate to the monetary size of the item
B) the probability that a particular sampling unit will be chosen in the sample is proportionate to the monetary size of the item
C) clients with larger balances are less likely to be sampled and audited
D) only large firms can afford the extra cost associated with this procedure
Correct Answer:
Verified
Q113: The common steps in any transaction stream
Q114: The results of the sample are used
Q115: What is statistical allowance for sampling risk?
A)A
Q116: The major advantages of non-statistical sampling include
Q117: The major disadvantages of non-statistical sampling include
Q119: The sampling unit in PPS (probability proportionate
Q120: The auditor can _.
A)never be certain that
Q121: Smaller populations with fewer number of units
Q122: An auditor can reduce the impact of
Q123: Stratification is often advantageous because _.
A)the combined
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