Use of the Ratio Estimation Sampling Technique to Estimate Dollar

question 50

Multiple Choice

Use of the ratio estimation sampling technique to estimate dollar amounts is inappropriate when:

• A)The total book value is known and corresponds to the sum of all the individual book values.
• B)A book value for each sample item is unknown.
• C)There are some observed differences between audited values and book values.
• D)The audited values are nearly proportional to the book value.

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