When no misstatements are found in a PPS sampling plan:
A) allowance for sampling risk must be adjusted upward to compensate.
B) projected misstatement in the population is zero.
C) sampling must continue until at least one deviation is found.
D) the auditor should use a lower risk of incorrect acceptance in evaluating the sample than used in determining sample size.
E) the expansion factor can always be ignored.

Question

Quizplus · Accepted Answer

When no misstatements are found in a PPS (Probability Proportional to Size) sampling plan, the projected misstatement in the population is considered to be zero. This is because PPS sampling directly relates the sample results to the population value, and finding no misstatements suggests there are likely no significant misstatements in the entire population.

When No Misstatements Are Found in a PPS Sampling Plan