MUS Flashcards
1
Q
Monetary unit sampling is used for
A
substantive tests of details
2
Q
def: MUS
A
statistical sampling method developed specifically for auditors
3
Q
which 4 factors are used for MUS
A
tolerable misstatement, ARIA, TER and EPER and then calculate dollar interval and select a sample
4
Q
at the end of the test the auditor should
A
determine upper misstatement bound and compare to tolerable misstatement
5
Q
pros of MUS (4)
A
- increases the likelihood of selecting high dollar items from population
- reduces cost bc several sample items are tested at once
- easy to apply
- statistical conclusion
6
Q
MUS is usually used for substantive testing where sample size is
A
give + auditor is looking for overstatements
7
Q
which account is MUS for
A
revenue or assets accounts
8
Q
how to find the interval for MUS
A
- calculation total pop (sum of $ values)
- interval = total/sample size
- cumulative column
- after interval reset @ $ amount
9
Q
the larger items have a ______ chance of getting picked
A
higher; but does not mean they will
10
Q
MUS should not be used for
A
understatements ; expenses and liabilities accounts
