When evaluating the MUS sample results,the auditor calculates the total estimated misstatement in the account balance based on the sampling process using which of the following components?
A)Basic precision.
B)Projected misstatement for items in lower-stratum.
C)Incremental Allowance for Sampling Error.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the components listed (basic precision, projected misstatement for items in lower-stratum, and incremental allowance for sampling error) are used to calculate the total estimated misstatement in the account balance when using MUS sampling. Basic precision is used to calculate the sampling interval, projected misstatement for items in lower-stratum is used to estimate the misstatement in the unsampled population, and incremental allowance for sampling error is used to account for the possibility of errors in the sample selection process.

When Evaluating the MUS Sample Results,the Auditor Calculates the Total