$9-21$ Edwards has decided to use monetary$-$unit sampling in the audit of an entity's

accounts receivable balance. Few, if any, misstatements of account balance over$-$

statement are expected.

$4$ Statistical and Nonstatistical Sampling Tools for Auditing

Required:

a$.$ Identify the advantages of using monetary$-$unit sampling over classical variables

sampling.

b$.$ Calculate the sample size and the sampling interval Edwards should use for the

following information:

c$.$ Calculate the UML assuming that the following three misstatements were discov$-$

ered in testing based on the MUS sample computed in part $b.$