What are tests of controls? What is the audit team’s goal in performing them in an attributes sampling application?
Answer to relevant QuestionsWhat factors influence the determination of the upper limit rate of deviation?What are the advantages and disadvantages of using MUS? Under what conditions is it best used?What options are available to the audit team if the upper limit on misstatements exceeds the tolerable misstatement?Which of the following types of variables sampling plans has a tendency to select higher-dollar items for examination? a. Difference estimation. b. Mean- per- unit estimation. c. Monetary unit sampling. d. Ratio estimation.Assume that an account with a recorded balance of $ 5,000 has an audited balance of $ 3,000. By using monetary unit sampling, if the sampling interval is $ 1,500, the projected misstatement would be a. $ 600 . b. $ 900 . c. ...
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