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NEW QUESTION: 1

A. Option A
B. Option C
C. Option D
D. Option B
Answer: D

NEW QUESTION: 2
Which of the following most likely would be an advantage in using classical variables sampling rather than
probability-proportional-to-size (PPS) sampling?
A. The auditor rarely needs the assistance of a computer program to design an efficient sample.
B. Any amount that is individually significant is automatically identified and selected.
C. Inclusion of zero and negative balances generally does not require special design considerations.
D. An estimate of the standard deviation of the population's recorded amounts is not required.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. Inclusion of zero and negative balances requires special design considerations with
PPS sampling, but it does not require special design considerations with classical variables sampling.
Choice "A" is incorrect. An estimate of the standard deviation of the population's recorded amounts is
required for classical variables sampling, but not for PPS sampling.
Choice "B" is incorrect. The auditor is less likely to need a computer program to design an efficient sample
for PPS sampling than for classical variables sampling.
Choice "D" is incorrect. Any amount that is individually significant is more likely to be identified and
selected when using PPS sampling than when using classical variables sampling.

NEW QUESTION: 3


Answer:
Explanation:

Explanation