Below are some situations in which it would be preferable to use either monetary unit sampling or classical variables sampling.Using the letters M (for monetary unit sampling)or C (for classical variables sampling).
1___.Several sampling units in the population have a zero or negative balance.
2___.The auditor would like to examine a smaller number of items.
3___.The account balance is susceptible to understatement error.
4___.The account balance includes a few logical units with very large dollar balances.
5___.The auditor is able to form a reasonable estimate of the variability of the population.
6___.The auditor would like to ensure that the sampling method provides a conservative (higher)estimate of misstatement in the account balance.
7___.The account balance is susceptible to overstatement error.

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The Answer of Below are some situations in which it would be preferable to use either monetary unit sampling or classical variables sampling.Using the letters M (for monetary unit sampling)or C (for classical variables sampling).
1___.Several sampling units in the population have a zero or negative balance.
2___.The auditor would like to examine a smaller number of items.
3___.The account balance is susceptible to understatement error.
4___.The account balance includes a few logical units with very large dollar balances.
5___.The auditor is able to form a reasonable estimate of the variability of the population.
6___.The auditor would like to ensure that the sampling method provides a conservative (higher)estimate of misstatement in the account balance.
7___.The account balance is susceptible to overstatement error.

Below Are Some Situations in Which It Would Be Preferable