Which of the Following Most Likely Would Be an Advantage

question 114

Multiple Choice

Which of the following most likely would be an advantage in using classical variables sampling rather than probability-proportional-to-size (PPS) sampling?

• A) An estimate of the standard deviation of the population's recorded amounts is not required.
• B) The auditor rarely needs the assistance of a computer program to design an efficient sample.
• C) Inclusion of zero and negative balances generally does not require special design considerations.
• D) Any amount that is individually significant is automatically identified and selected.

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Definitions:

Compounded Quarterly

Refers to the process of applying interest to an initial amount and any accumulated interest every three months.

Retirement Income

The total amount of money received from various sources during retirement, including pensions, savings, investments, and social security benefits.

Retirement Funds

Financial assets set aside to support individuals financially when they cease working, typically in the form of pensions or savings plans.

Compounded Monthly

Interest computation method where interest gains are calculated on a monthly basis, with each month's interest added to the principal for future calculations.