Which of the following sampling risks does the auditor consider in determining the sample size in a monetary unit sampling (MUS)application?
A) Risk of overreliance.
B) Risk of underreliance.
C) Risk of incorrect acceptance.
D) Risk of incorrect rejection.

Question

Quizplus · Accepted Answer

Monetary unit sampling focuses on estimating the total dollar amount in error, so the primary risk considered is the risk of incorrect acceptance (i.e., the risk that the sample leads to the conclusion that the account balance is not materially misstated when it actually is). The other options relate to classical variables sampling and are not relevant to MUS.

Which of the Following Sampling Risks Does the Auditor Consider