Probability proportionate to size sampling _______.
A)should only be used in substantive testing of transactions
B)should only be used in substantive testing of balances
C)should not be used for substantive testing of transactions and balances
D)can be used for substantive testing of transactions and balances

Question

Quizplus · Accepted Answer

Probability proportionate to size sampling can be used for both substantive testing of transactions and balances. It is a statistical method of sampling that ensures larger items in a population are more likely to be selected for testing, based on their proportionate size to the entire population. This method provides a more representative sample of a population, which can increase the accuracy of audit conclusions.

Probability Proportionate to Size Sampling _______