MONETARY UNIT SAMPLING

We are going to use MUS for testing additions to property plant and equipment to audit the assertions of existence and valuation. Few, if any, misstatements are expected.

Tolerable Misstatement

$15,000

Expected Misstatement

$6,000

Desired Confidence Level

95%

Total amount of additions during the year

$300,000

1. What should our sample size be given the above information?(Hint:you will use the sample size tables from Ch. 8 to obtain sample size for MUS sampling):

1. Calculate the UML assuming that you identified the following misstatements in your testing:

Misstatement Number Book Value Audit Value

1 $400 $320

2 500 0

3 3,000 2,500

The UML is (round to the nearest dollar):