Which of the following most likely would be an advantage in using classical variables sampling rather than monetary-unit sampling?
A)An estimate of the standard deviation of the population's recorded amounts is not required.
B)The auditor rarely needs the assistance of a computer program to design an efficient sample.
C)Inclusion of zero and negative balances generally does not require special design considerations.
D)Any amount that is individually significant is automatically identified and selected.

Question

Quizplus · Accepted Answer

Monetary-unit sampling (MUS), also known as dollar-unit sampling, often requires special consideration for zero and negative balances because each unit (dollar) has an equal chance of selection, making it challenging to handle these balances. Classical variables sampling, on the other hand, treats each account or transaction as a unit for sampling purposes, making it easier to include zero and negative balances without special design considerations.

Which of the Following Most Likely Would Be an Advantage