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Commercial Pilot Licence (CPAER) – Canada · Question

An auditor is testing accounts receivable balances. If the auditor plans to use monetary unit sampling (MUS), what characteristic of the population makes MUS particularly effective?

Monetary Unit Sampling (MUS) gives proportionately more attention to larger items in a population, making it particularly effective when the population contains

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Question: An auditor is testing accounts receivable balances. If the auditor plans to use monetary unit sampling (MUS), what characteristic of the population makes MUS particularly effective?

Answer options:

  • The population contains a large number of misstatements.
  • The population is composed of items with similar values. ✅ The population includes a few large items and many small items.
  • The population has a high risk of understatement.

Correct answer: The population includes a few large items and many small items.

Explanation: Monetary Unit Sampling (MUS) gives proportionately more attention to larger items in a population, making it particularly effective when the population contains a few large items and many small items, as these larger items are more likely to contain material misstatements.

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