Which of the following is not an advantage associated with monetary unit sampling (MUS)?
A)MUS methods typically include transactions or components reflecting relatively large dollar amounts.
B)MUS methods are more effective in identifying overstatement errors.
C)MUS methods provide a conservative (higher)estimate of misstatement in the account balance or class of transactions.
D)MUS methods typically result in relatively small sample sizes.

Question

Quizplus · Accepted Answer

Monetary unit sampling is known for its efficiency in identifying overstatement errors, and it typically includes transactions with large dollar amounts, resulting in relatively small sample sizes. However, MUS methods are not known to provide conservative estimates of misstatement. Instead, MUS methods provide an unbiased estimate of misstatement. Therefore, option C is not an advantage of MUS.

Which of the Following Is Not an Advantage Associated with Monetary