Question
6. Monetary-unit sampling sometimes eliminates the need to stratify the sample because A. Large items tend to be automatically selected for inclusion in the sample.
6. Monetary-unit sampling sometimes eliminates the need to stratify the sample because
A. Large items tend to be automatically selected for inclusion in the sample.
B. The risk of incorrect acceptance is inversely related to sample size.
C. Tolerable misstatement is considered when determining sample size.
D. The upper limit on misstatements can be computed based on statistical principles.
9. Gabrielle used MUS to investigate whether the Inventory of Tremont Company was materially correct (whether she did this manually or used ACL does not matter). She determined that the Upper Misstatement Limit was greater than the Tolerable Misstatement. She now should
A. Declare that Inventory is materially incorrect and make the company do an adjustment.
B. Declare that Inventory is materially correct and go on to the next part of the audit.
C. Not enough information is provided to answer this question.
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