Question: In statistical sampling methods used in substantive testing, an auditor most likely would stratify a population into meaningful groups if a. Probability-proportional-to-size (PPS) sampling is

In statistical sampling methods used in substantive testing, an auditor most likely would stratify a population into meaningful groups if

a. Probability-proportional-to-size (PPS) sampling is used.

b. The population has highly variable recorded amounts.

c. The auditor’s estimated tolerable misstatement is extremely small.

d. The standard deviation of recorded amounts is relatively small.

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