The most common objective of PPS sampling plans is to:
A) determine the rate of deviation from a control procedure.
B) estimate the true dollar value in an unrecorded account.
C) establish that the rate of deviation from a control procedure does not exceed the established tolerable rate.
D) independently estimate the value of a class of transactions.
E) obtain evidence that a recorded account balance is not materially misstated.

Question

Quizplus · Accepted Answer

PPS (Probability Proportional to Size) sampling is often used in audit procedures to obtain evidence that a recorded account balance is not materially misstated. This method focuses on the value of transactions, making it suitable for verifying account balances.

The Most Common Objective of PPS Sampling Plans Is To