Author Question: When the sample selection is done using probability proportional to size sample selection (PPS), (Read 66 times)

haydenjmcm · **on:** Aug 21, 2022

Question 1

Using statistical sampling to assist in verifying the year-end accounts payable balance, an auditor has accumulated the following data:

	Number of accounts	Book balance	Balance determined by the auditor
Population:	4,000	$5,000,000	?
Sample:	200	$250,000	$300,000

Projecting the misstatement to the population, the auditor's estimate of year-end accounts payable balance would be
◦ $5,050,000.
◦ $5,125,000.
◦ $6,000,000.
◦ $6,150,000.

Question 2

When the sample selection is done using probability proportional to size sample selection (PPS),
◦ the actual number of units selected for testing may be more than the computed sample size.
◦ the auditor must use systematic selection, rather than random selection of dollars.
◦ population items with a zero recorded balance have no chance of being selected.
◦ negative balances must be treated as positive balances.

annaelena92 · **Reply #1 on:** Aug 21, 2022

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 39% of students answer this correctly