The method used to measure the estimated total misstatement amount in a population when there is both a recorded value and an audited value for each item in the sample is
A) difference estimation.
B) mean-per-unit estimation.
C) ratio estimation.
D) monetary unit sampling.

Question

Quizplus · Accepted Answer

Difference estimation is used when there is a recorded value and an audited value for each item in the sample, allowing the auditor to estimate the total misstatement in the population by analyzing the differences observed in the sample.

The Method Used to Measure the Estimated Total Misstatement Amount