Monetary unit sampling is not particularly effective at detecting
A) overstatements.
B) understatements.
C) errors in current assets.
D) errors in noncurrent assets.

Question

Quizplus · Accepted Answer

Monetary unit sampling, also known as dollar-unit sampling, is more effective at detecting overstatements because it has a higher probability of selecting larger value items for testing. Understatements are less likely to be detected because smaller value items, where understatements might be more prevalent, have a lower chance of being selected.

Monetary Unit Sampling Is Not Particularly Effective at Detecting