The following are the entire outstanding accounts receivable for Jake's Bookbinding Company Ltd. The popu¬ lation is smaller than would ordinarily be the case for statis¬ tical sampling, but an entire population is useful to show how to select samples by monetary unit sampling.

Required

a. Select a sample of 10 items using systematic MUS sam¬ pling. Use a starting point of 1857. Identify the physical units selected. Explain how you determined the interval to be used.

b. Why would an auditor use MUS?

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POPULATION RECORDED POPULATION RECORDED ITEM AMOUNT ITEM AMOUNT -2345678 $1,410 21 $4,865 9,130 22 770 660 23 2,305 3,355 24 2,665 5,725 25 1,000 8,210 26 6,225 580 27 3,675 44,110 28 6,250 9 825 29 1,890 10 1,155 30 27,705 11 2,270 31 935 12 50 32 5,595 13 5,785 33 930 14 940 34 4,045 15 1,820 35 9,480 16 3,380 36 360 17 530 37 1,145 18 955 38 6,400 19 4,490 39 100 20 +7,140 40 8.435 $207,295