Auditors usually need to provide their auditing report within a limited period. They must learn to select the essential part of the auditing items (Monetary Unit measured transactions in this module) to follow substantive audit testing. This lecture demonstrates one sampling technique -Variables Sampling. It is used as Monetary

Unit Sampling (MUS). We discussed the fundamental processes and the factors that can influence MUS sampling size and how to select sample items.

Specifically, the lecture demonstrated how to evaluate sampling results by discussing the relationship between the projected misstatement, incremental allowance for sampling risk, and basic allowance for sampling risk.

 

Question 1: What is the sampling risk, and how to control this risk in auditing?

Question 2: What is projected misstatement?