When the Sample Selection Is Done Using Probability Proportional to Size

question 82

Multiple Choice

When the sample selection is done using probability proportional to size sample selection (PPS) ,

• A) the actual number of units selected for testing may be more than the computed sample size.
• B) the auditor must use systematic selection, rather than random selection of dollars.
• C) population items with a zero recorded balance have no chance of being selected.
• D) negative balances must be treated as positive balances.

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Definitions:

Club Membership

Club membership describes an individual's subscription or affiliation with a private group that offers access to exclusive resources or activities.

Price of Y

The market value or cost assigned to good Y, influenced by factors like supply, demand, and market conditions.

Discount

A reduction from the full price or standard cost of a good or service, often used to stimulate sales or clear inventory.

Equivalent Variation

An economic concept measuring the change in income needed to reach an individual's utility level before a price change, holding prices constant.