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Exam IIA-CIA-Part2 topic 5 question 353 discussion

Actual exam question from IIA's IIA-CIA-Part2
Question #: 353
Topic #: 5
[All IIA-CIA-Part2 Questions]

Which of the following is one of the key differences between probability-proportional-to-size sampling (PPS) and attribute sampling?

  • A. PPS sampling is used to reach conclusions regarding monetary amounts, attribute sampling is not.
  • B. PPS sampling is used to reach conclusions regarding rates of occurrence, attribute sampling is not.
  • C. PPS sampling is applied within the context of testing controls, attribute sampling is not.
  • D. Attribute sampling is affected by the monetary book value of the population, PPS sampling is not.
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Suggested Answer: A 🗳️

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emtofid
4 months, 2 weeks ago
Selected Answer: A
Probability-proportional-to-size sampling (PPS) is designed to evaluate monetary values and is typically used for substantive testing to assess the monetary amounts in financial statements. In contrast, attribute sampling is used to assess the frequency or rate of occurrence of specific attributes or characteristics within a population, often in the context of testing controls and compliance.
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lely55
1 year, 2 months ago
Selected Answer: A
From Gleim, one of the attribute sampling characteristics that it's not used to estimate a monetary amount.
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