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:

Addition Polymer

A polymer formed by the successive addition of monomer molecules with unsaturated bonds, leading to a long chain molecule.

Condensation Polymer

A polymer formed by the reaction where two molecules combine with the simultaneous elimination of a small molecule, such as water.

Hydrolyzed

The chemical process in which a molecule is split into two parts through the addition of water, breaking chemical bonds in the molecule.

Acidic Conditions

An environment or a set of circumstances where the pH is less than 7, promoting reactions typical of acids.