IIA-CIA-PART2 · Question #204
Which of the following attribute sampling methods would be most appropriate to use to measure the total misstatement posted to an accounts payable ledger?
The correct answer is B. Probability to proportional size sampling. Probability-proportional-to-size (PPS) sampling, also known as monetary unit sampling, is most appropriate for measuring the total misstatement in an accounts payable ledger. This method is used to determine the likelihood of individual items being selected based on their size…
Question
Which of the following attribute sampling methods would be most appropriate to use to measure the total misstatement posted to an accounts payable ledger?
Options
- AStop-or-go sampling
- BProbability to proportional size sampling
- CClassical variable sampling
- DDiscovery sampling
How the community answered
(30 responses)- A10% (3)
- B80% (24)
- C7% (2)
- D3% (1)
Explanation
Probability-proportional-to-size (PPS) sampling, also known as monetary unit sampling, is most appropriate for measuring the total misstatement in an accounts payable ledger. This method is used to determine the likelihood of individual items being selected based on their size, with larger items having a higher probability of being selected. This is particularly useful in identifying overstatements and misstatements in financial records, such as accounts payable, where the monetary value of transactions is a critical factor.
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