Probability-Proportional-To-Size (PPS) Sampling Would Most Likely Not Be Cost-Effective In

question 66

Multiple Choice

Probability-proportional-to-size (PPS) sampling would most likely not be cost-effective in:

• A) estimating the amount of dollar error caused by deviations from a particular control.
• B) confirming accounts receivable when unapplied credits to customer accounts are insignificant.
• C) independently estimating the value of a certain class of transactions.
• D) testing investment securities for overstatements.
• E) testing additions to plant assets for overstatements.

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Definitions:

Observations

The act of observing something or the data collected during an event or process.

Populations

The entire group of individuals or instances about whom the data is collected or a study is conducted.

Elements

The entities on which data are collected.

Samples

Collections or subsets of data taken from a larger population, used to analyze and make inferences about the population.