In monetary-unit sampling, the values of the estimated likely maximum misstatements are referred to as the:
A) point estimates.
B) misstatement bounds.
C) confidence intervals.
D) precision intervals.

Question

Quizplus · Accepted Answer

The values of the estimated likely maximum misstatements in monetary-unit sampling are referred to as misstatement bounds. This is because the misstatement bounds represent the maximum amount of misstatement that is expected to be present in the population based on the sample results. Point estimates refer to the estimated amount of misstatement in the sample, confidence intervals represent the range of values within which the true population misstatement is likely to fall, and precision intervals refer to the level of precision of the estimate.

In Monetary-Unit Sampling, the Values of the Estimated Likely Maximum