For monetary-unit sampling, a sampling interval of 400 means that A) Every 400^th item in the account will be selected in the sample. B) The average size of items in the account is 400. C) Every 400^th dollar in the account will be included in the sample. D) The average misstatement in sample items is $400.

Question

Quizplus · Accepted Answer

In monetary-unit sampling, the sampling interval represents the value of each sampling unit. Therefore, a sampling interval of 400 means that every $400 in the account will be included in the sample. Option A is incorrect because it refers to "item" instead of dollars, and option B is incorrect because the sampling interval has nothing to do with the average size of items in the account. Option D is also incorrect because the sampling interval does not represent the average misstatement.

For Monetary-Unit Sampling, a Sampling Interval of 400 Means That