In short
Monetary unit sampling (MUS) is a statistical sampling method for substantive tests in which each dollar in the population has an equal chance of selection, so larger items are more likely to be chosen.
Key takeaways
- It is efficient for testing overstatement and finding a few large misstatements.
- Items at or above the sampling interval are always selected, and their misstatements aren't projected.
- It is less suited to testing understatement and zero or negative balances.
Example
Recorded amount $1,000,000, tolerable misstatement $50,000, reliability factor 3.0: sampling interval $16,667 and a sample of 60.
Where it's tested
AUD: Audit Sampling — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In a PPS sample with a sampling interval of $10,000, an item with a recorded amount of $8,000 is found to have an audited amount of $6,000. What is the projected misstatement for this item?