Choice "C" is correct. PPS sampling is a method designed to estimate overstatement errors. Zero balances, negative balances, and understated balances require special design considerations.
Choice "a" is incorrect. PPS sampling emphasizes larger items, which are more likely to be selected for the sample.
Choice "d" is incorrect. PPS sampling is a technique used to estimate a dollar amount of error in a population. It does not identify items where controls were lacking.
Choice "b" is incorrect. PPS sampling does not identify zero and negative balances; however, if such balances exist in the population, special design considerations are required in order to use PPS sampling.
