A major disadvantage of monetary unit sampling (MUS) is which of the following?
A) Sample selection is relatively easy.
B) Sample sizes are relatively small.
C) It is difficult to test for understatement.
D) It directly controls for the risk of incorrect acceptance.

Question

Quizplus · Accepted Answer

Monetary Unit Sampling (MUS) is primarily designed to test for overstatements (e.g., in revenue or asset accounts) because it tends to select higher-value items for testing. This makes it less effective for detecting understatements (e.g., in liability or expense accounts), as these would require a different sampling approach to identify items that are omitted or undervalued.

A Major Disadvantage of Monetary Unit Sampling (MUS) Is Which