Monetary-Unit Sampling Is Most Useful When the Internal Auditor

question 367

Multiple Choice

Monetary-unit sampling is most useful when the internal auditor:

• A) Is testing the accounts payable balance.
• B) Cannot cumulatively arrange the population items.
• C) Expects to find several material errors in the sample.
• D) Is concerned with overstatements.

---

Definitions:

Laws Governing

The body of laws and regulations that establish the rules and standards applicable to specific areas, activities, or sectors.

Trademarks

Icons, titles, or expressions that are legally recognized or adopted through usage to signify a corporation or merchandise.

Licensing

The act of granting official permission to use intellectual property, perform specific activities, or operate legally under defined conditions.

Sole Proprietorship

A business structure where a single individual owns and runs the business, enjoying full control and responsibility for its debts and liabilities.