Consider the following statements and explain why they may be true or false:

(a) Statistical sampling methods do not require auditors to exercise judgement.

(b) Tolerable error is the amount of error auditors expect to find in an account balance.

(c) Monetary unit sampling is a form of statistical sampling that enables auditors to estimate both the most likely monetary error in an account balance and the upper error limit.

(d) Auditors only use the concept of materiality at the final stage of an audit when considering whether the financial statements give a true and fair view.

(e) The most important factor influencing the materiality of an item in the financial statements is its monetary value.

(f) When setting a materiality level for the financial statements an important factor influencing the auditors’ decision is likely to be the company’s profit for the year.