Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 88

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

Answer options

• 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.

Correct answer: A

Explanation

The correct answer is A because PPS sampling is specifically designed to evaluate monetary amounts, making it suitable for financial statement audits. In contrast, attribute sampling is used to assess the presence or absence of specific characteristics, not monetary values. The other options either misrepresent the focus of each sampling method or incorrectly describe their applicability.