Advantages and disadvantages of Value Weighted Selection

Question 1

Advantage of value weighted selection (sample automated)

Answer 1

Auditor can design and evaluate the sample quickly and in a cost-effective way using automated tools and techniques

Question 2

Advantage of value weighted selection (material items)

Answer 2

All material items are automatically selected ensuring all material items are tested

Question 3

Disadvantage of value weighted selection (sample automated)

Answer 3

Selecting the sample can be time consuming if automated tools and techniques cannot be used to select the sample

Question 4

Disadvantage of value weighted selection (negatively valued)

Answer 4

VWS does not cope where there are negatively valued items in the population

Question 5

Disadvantage of value weighted selection (randomly ordered)

Answer 5

VWS will not be effective if population is not randomly ordered