In which of the following situations would the auditor be more likely to use monetary unit sampling as opposed to classical variables sampling?
A)Larger expected misstatement: Yes; Concern with overstatements: Yes
B)Larger expected misstatement: Yes; Concern with overstatements: No
C)Larger expected misstatement: No; Concern with overstatements: Yes
D)Larger expected misstatement: No; Concern with overstatements: No

Question

Quizplus · Accepted Answer

Monetary unit sampling is more effective when there is a concern with overstatements and when the expected misstatement is not large, as it is designed to detect overstatements in account balances.

In Which of the Following Situations Would the Auditor Be