The following are the entire outstanding accounts receivable for Stan€™s Bookbinding Company Ltd. The population is smaller than would ordinarily be the case for statistical sampling, but an entire population is useful to show how to select samples by monetary unit sampling.

REQUIRED
a. Select a sample using systematic MUS sampling. Materiality is $50,000 and an appropriate MUS interval is $35,000. Use a starting point of 1857. Identify the physical units selected.
b. Why would an auditor use MUS?

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Population Recorded Population Recorded Item Amount Item Amount 1,410 9,130 660 3,355 5,725 8,210 580 44,110 825 1,155 12 13 14 15 16 17 18 19 20 $2,270 50 5,785 940 1,820 3,380 530 955 4,490 17,140 4 10 Population Item Recorded Population Recorded Amount ltem Amount $4,865 770 2,305 2,665 1,000 6,225 3,675 6,250 1,890 27,705 21 $935 5,595 930 4,045 9,480 360 1,145 6,400 100 8,435 $207,295 32 23 24 25 26 27 28 29 30 34 35 36 37 38 39 40