Attribute Sampling and Monetary-Unit Sampling are two sampling techniques designed to help an auditor test controls. Discuss how each are different and provide an example of how you would decide which one to use if you were auditing a company’s credit-check control for customer orders. Defend which technique, in your opinion, is more reliable. Provide examples to support your opinion.
Attribute Sampling and Monetary-Unit Sampling are two sampling techniques designed to help an auditor test controls. Discuss how each are different and provide an example of how you would decide which one to use if you were auditing a company’s credit-check control for customer orders. Defend which technique, in your opinion, is more reliable. Provide examples to support your opinion.
Monetary-Unit Sampling and Attribute Sampling are two different type of sampling techniques widely used for an auditor test control.
Monetary Unit sampling
Monetary-unit sampling (MUS) or Dollar unit sampling is a statistical sampling method used to assess the amount of monetary misstatement that may exist in an account balance. This method is also known as Probability-Proportional-to-size sampling and it has been used for many years and is widely accepted among auditors. Monetary unit sampling provides a high level of assurance that all big amounts in a population are subject to testing. Auditors usually use monetary unit sampling to sample and test inventory, accounts receivable and loans receivable.
Attribute Sampling
Attribute sampling is a statistical sampling method used in audit procedures that aims to access the characteristics of a given population. When using this sampling method, the sampling unit is a single document or record. It involves selecting a few transactions and making assumptions about how their characteristics represent a full population.
Attribute sampling is often used to test whether or not a company's internal controls are being correctly followed. Attribute sampling will check an item being sampled either will or won't possess certain attributes or qualities.
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