Question

show some pictures or images of how an individual use PPS to test account balances

Answer 1

Probability proportional to size (PPS) sampling is a method of sampling from a finite population in which a size measure is available for each population unit before sampling and where the probability of selecting a unit is proportional to its size. Its use arises in two particular contexts: (i) multistage sampling and (ii) single‐stage sampling of establishments. Unbiased estimation is obtained using the Hansen–Hurvitz estimator in the case of PPS with replacement sampling and the Horvitz–Thompson estimator in the case of probability proportional to size without replacement (PPSWOR) sampling.

Probability-Proportional-to-Size Sampling PPS sampling is an approach that uses attribute sampling theory to express a conclusion in dollar amounts rather than as a rate of deviations. This form of sampling may be used in substantive tests of both transactions and balances.

X Probability Proportional to Size (PPS) Sampling Dollar-based sampling approach where the population is the number of dollars in the account balance examined Using dollars as sampling units means larger dollar items in the account balance are more likely to be selected in the sample OPPS is an effective sampling approach when the auditor is testing for overstatements Appropriate when few misstatements are expected and individual book values are available