Indicate whether the following statements are True or False.

Use the following information to answer questions 9 and 10 (the last two questions).

Tolerable misstatement $50,000

Sample size 100

Expected misstatement $5,000

Book value of A/R $300,000

Group of answer choices

Size of a PPS sample is not based on the estimated variation of audited amounts.

[ Choose ] False True

PPS sampling results in a stratified sample.

[ Choose ] False True

Individually significant items are automatically identified.

[ Choose ] False True

PPS sampling results in a smaller sample size when numerous small misstatements are expected.

[ Choose ] False True

If no misstatements are expected, PPS sampling will usually result in a smaller sample size than classical variables sampling methods.

[ Choose ] False True

One does not need a book value for individual items to evaluate a PPS sample.

[ Choose ] False True

A PPS sample eliminates the need to project results to the overall population.

[ Choose ] False True

PPS sampling is "preferred" by the professional standards.

[ Choose ] False True

The sampling interval is $500.

[ Choose ] False True

Increasing the expected misstatement to $10,000 will increase the sample size.

[ Choose ] False True