Which of the following does not represent a difference in the use of monetary unit sampling (MUS) and classical variables sampling?
A) Classical variables sampling incorporates the acceptable risk of incorrect rejection in determining the sample size but MUS does not.
B) The need to formally stratify the sample is more important in MUS than classical variables sampling.
C) MUS is more likely to be used in examining accounts likely to contain overstatement errors than classical variables sampling.
D) The risk of incorrect acceptance is of primary concern to the auditor in MUS but not in classical variables sampling.
Correct Answer:
Verified
Q108: The _ is the maximum amount by
Q109: The _ is the difference between the
Q110: In an MUS application,the population size is
Q111: Monetary unit sampling is most effective when
Q112: Y.Chang,CPA,performed a nonstatistical sampling plan to examine
Q114: The risk of _ occurs when the
Q115: The _ assumes that the entire sampling
Q116: The risk of incorrect rejection results in
Q117: E.Ewing,CPA,performed a nonstatistical sampling plan to examine
Q118: A primary advantage of monetary unit sampling
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