Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 71

Monetary Unit and Classical Variables Sampling. Indicate whether each of the following characteristics applies to monetary unit sampling (MUS), classical variables sampling (CVS), both MUS and CVS (both), or neither MUS nor CVS (neither).
a. May be used in conjunction with substantive procedures.
b. Tends to select higher dollar items for examination.
c. Is more effective in identifying overstatements.
d. Incorporates assessments of tolerable misstatement in determining sample size.
e. Incorporates assessments of the population variability in determining sample size.
f. Controls the audit team's exposure to the risk of incorrect rejection and the risk of incorrect acceptance.
g. Requires the audit team to project discovered misstatements to the population.
h. Can expose the audit team to nonsampling risk.
i. May be used in conjunction with the study and evaluation of internal control.
j. Is more appropriate for use when a higher number of misstatements is anticipated.