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C is corrent because if a cyclical or periodic pattern exists in the disbursements which is related to the attribute being tested, a bias may result in that the sample will not be random and the sampling results may not be valid.
A is incorrect because individual disbursement items will be selected only once when systematic sampling is properly applied.
B is incorrect because individual disbursement items are not being replaced. Thus, each item has the opportunity of being selected only once when systematic sampling is properly applied.
D is incorrect because recording the population in a systematic pattern would bias the sample.