In monetary unit sampling (MUS), which of the following could be a difficulty in using MUS?
A) MUS is not designed for the understatement of a population.
B) If an auditor identifies understatement in a MUS sample, evaluation of the sample requires special considerations.
C) Selection of zero or negative balances requires special design considerations.
D) All of these choices.

Question

Quizplus · Accepted Answer

All the options listed are recognized difficulties in using Monetary Unit Sampling (MUS). MUS is primarily designed to test for overstatement rather than understatement, making it challenging to address populations where understatement is a concern. When an auditor finds an understatement in a MUS sample, it complicates the evaluation process because MUS inherently focuses on overstatement risks. Additionally, the selection of zero or negative balances in a MUS approach does indeed require special design considerations, as MUS typically involves selecting larger monetary units with a higher probability, which may not naturally include zero or negative balances.

In Monetary Unit Sampling (MUS), Which of the Following Could