MUS

Question 1

Monetary unit sampling is used for

Answer 1

substantive tests of details

Question 2

def: MUS

Answer 2

statistical sampling method developed specifically for auditors

Question 3

which 4 factors are used for MUS

Answer 3

tolerable misstatement, ARIA, TER and EPER and then calculate dollar interval and select a sample

Question 4

at the end of the test the auditor should

Answer 4

determine upper misstatement bound and compare to tolerable misstatement

Question 5

pros of MUS (4)

Answer 5

1. increases the likelihood of selecting high dollar items from population
2. reduces cost bc several sample items are tested at once
3. easy to apply
4. statistical conclusion

Question 6

MUS is usually used for substantive testing where sample size is

Answer 6

give + auditor is looking for overstatements

Question 7

which account is MUS for

Answer 7

revenue or assets accounts

Question 8

how to find the interval for MUS

Answer 8

1. calculation total pop (sum of $ values)
2. interval = total/sample size
3. cumulative column
4. after interval reset @ $ amount

Question 9

the larger items have a ______ chance of getting picked

Answer 9

higher; but does not mean they will

Question 10

MUS should not be used for

Answer 10

understatements ; expenses and liabilities accounts