PRINCIPLES OF AUDITING & OTHER ASSURANC
21st Edition
ISBN: 9781264007202
Author: WHITTINGTON
Publisher: MCG
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Question
Chapter 9A, Problem 1RQ
To determine
Explain the factors affecting
Expert Solution & Answer
Explanation of Solution
Monetary unit sampling (MUS):
Monetary unit sampling is a technique of calculation the misstatement in the population. It uses the attributes sampling theory for the calculation of the misstated value in the defined population. MUS consider the population size as a single dollar value item. It is is the total dollar value of the population.
Explain the factors affecting sample size in a monetary unit sampling (MUS):
Following are the factors affecting sample size in a monetary unit sampling (MUS):
- Book value of the population.
- Reliability factor.
- Expected misstatement.
- Tolerable misstatement.
- Expansion factor.
Thus, the above defined factors are used in the calculation of the sample size.
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Chapter 9A Solutions
PRINCIPLES OF AUDITING & OTHER ASSURANC
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