In which of the following situations would the auditor be more likely to use monetary unit sampling (MUS)as opposed to classical variables sampling?
A) Larger expected error, yes; concern with overstatements, yes.
B) Larger expected error, yes; concern with overstatements, no.
C) Larger expected error, no; concern with overstatements, yes.
D) Larger expected error, no; concern with overstatements, no.

Question

Quizplus · Accepted Answer

Monetary Unit Sampling (MUS) is more effective when there is a concern with overstatements and when the expected error is small, as it is designed to detect overstatements in account balances.

In Which of the Following Situations Would the Auditor Be