When confirming receivables in testing for overstatements,assume that there are few or no misstatements expected and the selection will be based on the dollar value of individual items.Which of the following is the auditor most likely to use?
A)MUS sampling.
B)Stratified mean-per-unit sampling.
C)Ratio estimation sampling.
D)Attribute sampling.

Question

Quizplus · Accepted Answer

MUS (Monetary Unit Sampling) sampling is appropriate when there are few or no misstatements expected and the selection is based on the dollar value of individual items. MUS sampling is a statistical sampling method that is commonly used in confirmations of accounts receivable, as it allows auditors to efficiently identify overstated receivables while minimizing the risk of under-sampling. Stratified mean-per-unit sampling and ratio estimation sampling are typically used when auditors expect misstatements to be present, while attribute sampling is typically used to test for compliance with control procedures.

When Confirming Receivables in Testing for Overstatements,assume That There Are