Probability-Proportional-To-Size (PPS) Sampling Should Not Be Used When

question 27

Multiple Choice

Probability-proportional-to-size (PPS) sampling should not be used when:

• A) the number of units in the population is unknown at the start of sampling.
• B) the variability of the population is unknown.
• C) book values for sampling units are not available.
• D) transactions and balances are tested for overstatement.
• E) testing plant asset additions.

---

Definitions:

Compensatory Damages

Compensatory damages are monetary awards to a plaintiff in a lawsuit, intended to compensate for actual losses or injuries incurred due to the defendant's actions.

Consequential Damages

A type of damages in a lawsuit that result not directly from the act but as a consequence of the initial act, often involving loss of profit or other indirect losses.

Liquidated Damages

Predetermined damages agreed upon by the parties in a contract to be paid if a specific breach occurs, as compensation not as a penalty.

Incidental Damages

Compensation for secondary or unforeseen losses resulting from a breach of contract.