Dollar-unit sampling is said to eliminate the need to stratify the sample because:
A) the risk of incorrect acceptance is inversely related to sample size.
B) sample items are selected in proportion to their dollar amount.
C) the upper limit on misstatements can be computed based on statistical principles.
D) tolerable misstatement is considered when determining sample size.

Question

Quizplus · Accepted Answer

Dollar-unit sampling selects items in proportion to their dollar amount, meaning that larger and more significant items will naturally have a higher chance of being selected. Therefore, stratifying the sample is not necessary as the dollar-unit approach inherently considers the importance of each item.

Dollar-Unit Sampling Is Said to Eliminate the Need to Stratify