Sociology PPS sampling design, what are the disadvantages of PPS sampling in auditing short answer q

Standard group sampling method (also known as probabilityproportiontosize (PPS method)).

First of all, you need to determine how to use stratified sampling for PPS and what is the purpose?

For example, if you want to check the PPS usage of college students in different regions, you need to sample in Shanghai, Beijing, Guangzhou, and Shenzhen.

If the purpose of sampling is to understand the level of college students using PPS, you can choose a prestigious university, a key university, a general university, and a junior college.

Needless to say, the rest

It means that in multi-stage sampling, especially in two-stage sampling, the probability of the primary sampling unit being selected depends on the size of the primary sampling unit, the larger the size of the primary sampling unit, the greater the chance of being selected, and the smaller the size of the primary sampling unit, the smaller the probability of being selected. It is a sampling of the sample size of the population divided into units with the same flag of different capacity according to an accurate standard, and the sample size is distributed in different ratios in the population.

PPS sampling is characterized by a high probability that the large part of the population will be selected, which can improve the representativeness of the sample.

The main advantages of PPS sampling are: the use of auxiliary information to reduce sampling error; The main disadvantages are: high requirements for auxiliary information, complex estimation of variance, etc.

The shortcomings of PPS sampling include the following:

1) When using PPS sampling, it is generally assumed that the approved amount of the sampling unit should not be less than zero or greater than the book amount. If the CPA anticipates an underestimation or an audited amount of less than zero, special consideration is required when designing the PPS sampling methodology.

2) If the CPA finds an underestimation in the sample sampled by PPS, special consideration is required when evaluating the sample.

3) The selection of zero or negative balances needs to be specially considered in the design. For example, if you're going to sample accounts receivable, a CPA might need to separate credit balances into a separate population. If checking items with zero balances is important to the audit objective, CPAs need to test them separately because zero balances will not be picked in the PPS sampling.

4) When misstatements are discovered, PPS sampling may overestimate the impact of sampling risk when evaluating a sample if the level of risk is given, making it more likely that the CPA will reject an acceptable overall book amount.

5) In PPS sampling, CPAs are usually required to accumulate the overall amount on a case-by-case basis. However, if the relevant accounting data is stored in electronic form, this will not add a significant additional audit cost.

6) When the overall misstatement amount is expected to increase, so does the sample size required for PPS sampling. In these cases, the sample size of the PPS sampling may be larger than that of the traditional variable sampling.

Disadvantages of PPS sampling:

1.Require that the misstated amount of each physical unit in the aggregate cannot exceed its carrying amount;

2.Undervalued physical units are less likely to be selected;

3.The selection of zero or negative balances needs to be specially considered in the design;

4.When the number of misstatements in the population increases, so does the required sample size;

5.When misstatements are discovered, the impact of sampling risk may be overestimated when evaluating the sample if the level of risk is given, making it more likely that the CPA will reject an acceptable overall book amount;

6.It is usually necessary to accumulate the overall amount on a case-by-case basis.

This can be linked to the advantages and disadvantages of PPS sampling, because the sample size of PPS sampling is usually smaller than that of traditional variable sampling methods when the expected misstatement of PPS sampling is absent or small, and when the number of misstatements in the population increases, the sample size required for PPS sampling also increases, and when misstatements are found, such as a certain level of risk of vertical results, PPS sampling may overestimate the impact of sampling risk when evaluating the sample. As a result, the CPA may decide on an acceptable overall book amount. Therefore, when the overall misstatement rate is low, PPS sampling is applied.

Non-probability sampling can be divided into convenience sampling, quota sampling, intentional sampling, snowball sampling and spatial sampling according to the sampling characteristics. A sampling method for non-static, temporary, spatially adjacent populations. For example, there is no definite set of marches and rallies, participants go from one place to another, some leave and some people come in, but these events take place within a certain range.

It is important to sample such a population at the same time so that the sample composition does not change much over time. Specifically, a number of investigators are evenly spaced apart, starting from a certain direction, interviewing the person closest to him, and then selecting one person at certain intervals as the subject of the investigation.

No, it is unequal probability sampling.

The contents of the sampling scheme design mainly include:

1.Clarify the purpose of the survey and determine the target amount to be estimated. For example, surveys on the ratings of TV programs, surveys on the consumption of daily necessities, etc., are often based on households; However, the general survey of attitudes and attitudes is carried out on an individual basis.

A change in the target amount will cause a change in the sampling plan, and once it has been specified, it should not be changed lightly.

2.Define the population and the sampling unit. For example, in the television program ratings survey, the population generally refers to the residents over the age of 4 in the television households in the television coverage area, and the smallest sampling unit is generally "households".

However, radio and television advertising and communication effect surveys generally take citizens aged 9 or over 12 as the audience, and the minimum sampling unit is "individual". Consumer surveys and surveys on social issues generally refer to citizens aged 18 years or older.

3.Determine or construct a sampling frame.

4.Requirements are put forward for the accuracy of the main target. For example, in a survey of ratings, the error of the average rating is no more than 3%, and so on.

5.Select the type of sampling scheme. For example, multi-level sampling is used in ratings surveys, and organizational forms such as stratified sampling are used at all levels, and isometric sampling is used at the last level.

6.According to the type of sampling scheme, the accuracy requirements and confidence of the main target quantity, etc., the sample size is determined, and the estimation formula of the overall target quantity (point estimation or interval estimation) and the estimation formula of sampling error are given.

7.Formulate specific methods and steps for the implementation of the plan.

The audit PPS sampling method is to take 1 yuan as the sampling unit, in order to illustrate the problem, the PPS sampling of accounts receivable is introduced here, and the cumulative arrears amount of each arrears account (including the arrears account) are listed in turn, and the interval of the arrears of each arrears is found, that is, the total amount of accounts receivable is segmented with the amount owed by each arrears account, so that each amount segment represents a debtor household, assuming that the sample is selected with a random number table, and the appropriate number of digits is selected. You can get random numbers, and then see which interval these numbers fall into, so as to correspond to find out the arrears as a sample of evidence.

PSS sampling is an issue in audits. If you want to understand PPS sampling thoroughly, you need to know a little about probability. PPS sampling: His sampling unit is yuan.

If you think of it this way, I'll give you a simple example. You have 3 stacks of sampling objects on hand, which are a=100 yuan, b = 200 yuan, and c = 300 yuan. In A, you use a red ball for one dollar, and you exchange it for 100 red balls, and B uses a green ball for one dollar, and you convert it into 200 green balls, and in the same way, C represents 300 yellow balls.

You put them in a big vat to touch, let's say you use the formula to find the sample size is 50, you go to the vat with your eyes closed and touch the ball, what color of ball do you say has the highest probability of touching? The essence of PPS sampling is this principle, the more fictional it is, the more balls it represents, and the more it is easier to touch. This is also the reason why PPS is not significantly effective for underestimation.