What is the objective of performing this test? What is the sampling unit? What i

Question

What is the objective of performing this test? What is the sampling unit?

What is the population?

These are the questions I am confused on the sampling and population I have some information

Richard Derick has asked you to develop a sampling plan to determine the

extent of misstatements in classifying expenditures as repairs and maintenance

expense or factory equipment additions. Given the problems noted during control

testing (as described in Module II), Derick believes that significant misstatements

may have occurred.

The same vendor

Explanation / Answer

Monetary-unit sampling (MUS) is a method of statistical sampling used to assess the amount of monetary misstatement that may exist in an account balance. The method, also known as dollar-unit sampling or probability-proportional-to-size sampling, has been used for many years and is widely accepted among auditors.

Using MUS involves three key steps:

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