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.

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Definitions:

Commercial Banks

Financial Institutions that provide a range of services such as accepting deposits, providing loans, and offering basic investment products to the public.

Investors

Individuals or entities that allocate capital to ventures, assets, or projects with the expectation of generating a financial return.

Consensus Approach

A decision-making process that seeks agreement from all participants, emphasizing collaboration and collective input.

Systems Approach

A holistic view of analyzing and solving problems considering the entire system's interactions and complexities.