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When the sample selection is done using probability proportional to size sample selection (PPS),

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When the sample selection is done using probability proportional to size sample selection (PPS),

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.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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Helped a lot

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