Question: The use of the ratio estimation sampling technique is most effective when a. The calculated audit amounts are approximately proportional to the clients book amounts.

The use of the ratio estimation sampling technique is most effective when

a. The calculated audit amounts are approximately proportional to the client’s book amounts.

b. A relatively small number of differences exist in the population.

c. Estimating populations whose records consist of quantities, but not book values.

d. Large overstatement differences and large understatement differences exist in the population.

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