When the auditor uses systematic random sampling with an individual dollar amount as the sampling unit,we refer to this method of sampling as
A)probability monetary sampling
B)proportionate monetary sampling
C)monetary proportionate to size sampling
D)monetary unit sampling
E)probability proportionate to size sampling
F)both A and B
G)both C and D
H)Both D and E

Question

Quizplus · Accepted Answer

Monetary unit sampling, also known as probability-proportional-to-size or PPS sampling, involves selecting a sample in such a way that each dollar in the population has an equal chance of being selected. This method is particularly useful in auditing because it focuses on the larger value items which have a higher chance of affecting the overall audit conclusion.

When the Auditor Uses Systematic Random Sampling with an Individual