The Most Common Objective of PPS Sampling Plans Is To

question 34

Multiple Choice

The most common objective of PPS sampling plans is to:

• A) determine the rate of deviation from a control procedure.
• B) estimate the true dollar value in an unrecorded account.
• C) establish that the rate of deviation from a control procedure does not exceed the established tolerable rate.
• D) independently estimate the value of a class of transactions.
• E) obtain evidence that a recorded account balance is not materially misstated.

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Definitions:

Abandoned Building

An Abandoned Building is a property that has been left vacant and unattended by its owner, often leading to deterioration and neglect.

Appraisals

The process of professionally estimating the value of a particular item, such as real estate or a business.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's worth in financial analysis.

Present Value Factor

Present value factor is a multiplier used in calculating the present value of a future sum of money or stream of cash flows, given a specified rate of return.