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

question 64

Multiple Choice

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

• A) few or no misstatements are expected.
• B) any misstatements are expected to be overstatements.
• C) testing investment securities.
• D) performing inventory price tests when few differences are anticipated.
• E) there are some zero-balance items in the population.

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Definitions:

Line

A line is a one-dimensional shape that extends without end in both directions and lacks any thickness.

Points

Specific locations in space or positions on a graph, defined by their coordinates.

Perpendicular

At an angle of 90 degrees to a given line, plane, or surface or to the ground.

Line

A straight one-dimensional figure having no thickness and extending infinitely in both directions, defined by two points in Euclidean geometry.