Question

What is the objective of using probability proportional to size sampling (PPS) to test account balances?

What is the objective of using probability proportional to size sampling (PPS) to test account balances?

Homework Answers

Answer #1

Below are the objective of using probability proportional to size sampling (PPS) to test account balances

  • Chances of selecting a thing from a large group are less than selecting a thing from a smaller group. for example, one sample had 20,000 things, the probability of a thing being selected would be 1/20000 or .005 percent. If another sample had 10,000 thing, the chance of a thing being selected would be 1/10000 or .01 percent
  • It has a known non-zero probability of being selected.
  • It takes varying sample sizes into account
  • This helps to avoid underrepresenting one subgroup in a study
  • It yields more accurate result.
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
AP10.7 (LO 8)  PPS sampling Edwards has decided to use probability-proportional-to-size (PPS) sampling in the audit of...
AP10.7 (LO 8)  PPS sampling Edwards has decided to use probability-proportional-to-size (PPS) sampling in the audit of a client's accounts receivable balance. Few, if any, errors of overstatement are expected. Edwards plans to use the following PPS sampling table: 5% RELIABILITY FACTORS FOR OVERSTATEMENTS Number of Overstatements    Risk of Incorrect Acceptance 1%    5%    10%    15%    20% 0  4.61    3.00    2.31    1.90    1.61 1  6.64 4.75 3.89 3.38 3.00 2  8.41 6.30 5.33...
32. an auditor is preparing to sample the appropriateness of signature on check appropriate statistical sampling...
32. an auditor is preparing to sample the appropriateness of signature on check appropriate statistical sampling method is Discovery sampling ratio estimation PPS sampling Attributes sampling 16. what element is required to prove fraud? A. intent B. Preponderance of the evidence C. confession of the perpetrator D. Falsification of documentation 25. Which of the following combination result in decrees in sample size in variation sampling context? Tolerable misstatement                                                Variation in Account balance A) Increase                                                                                      Increase B) Decrease                                                                                   Decrease C)...
In using sequential sampling to test controls that generally have been very effective in prior audits,...
In using sequential sampling to test controls that generally have been very effective in prior audits, which of the following is correct? A. Depending on the outcome of the initial sample, sequential sampling may result in a larger sample size relative to a fixed sampling plan. B. Sequential sampling will always provide auditors with the smallest final sample size for a given set of sampling parameters. C. Sequential sampling is inappropriate for this situation because it is likely that controls...
The basis for using a norma probability to approximate the sampling dustribution of and is
The basis for using a norma probability to approximate the sampling dustribution of and is
What are the advantages and disadvantages of probability-based sampling designs and non-probability-based sampling designs?
What are the advantages and disadvantages of probability-based sampling designs and non-probability-based sampling designs?
If observed through the 100x oil immersion objective, what is the size of an object that...
If observed through the 100x oil immersion objective, what is the size of an object that covers 2/3 of the field of view.
A sample of 64 account balances from a credit company showed an average daily balance of...
A sample of 64 account balances from a credit company showed an average daily balance of $1,040. The standard deviation of the population is known to be $200. We are interested in determining if the mean of all account balances (i.e., population mean) is significantly different from $1,000. a. Develop the appropriate hypotheses for this problem. b. Compute the test statistic. c. Compute the p-value. d. Using the p-value approach at 95% confidence, test the above hypotheses. e. Using the...
Epidemiology Suppose the sample size for a survey design based on a Simple Random Sampling is...
Epidemiology Suppose the sample size for a survey design based on a Simple Random Sampling is n=400.A survey has been designed by a cluster sample. What sample size would be required for this survey?.Suppose you further wish to adjust for the sample sizes to account for Recording errors,non-responses and other contigencies, briefly describe how you would determine the sample size for this consideration.Hence determine the sample size,assuming a cluster sampling design?
Why might social science research be conducted using probability sampling? (Focus on the RQ).
Why might social science research be conducted using probability sampling? (Focus on the RQ).
Consider a sampling distribution with p equals 0.13p=0.13 and samples of size n each. Using the...
Consider a sampling distribution with p equals 0.13p=0.13 and samples of size n each. Using the appropriate​ formulas, find the mean and the standard deviation of the sampling distribution of the sample proportion. a. For a random sample of size n=5000. The standard deviation is ____ (Round to four decimal places as needed) b. For a random sample of size n=1000. The standard deviation is ____ (Round to four decimal places as needed) c. For a random sample of size...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT