Which of the Following Are Limitations of Using the MUS

question 112

Multiple Choice

Which of the following are limitations of using the MUS sampling method?

• A) MUS is not very useful in testing for understatement.
• B) MUS is not very useful in testing for zero and negative amounts.
• C) N MUS is not very useful in testing if the auditor expects numerous misstatements.
• D) All of the above.

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Definitions:

Deficits

The amount by which a government, company, or individual's spending exceeds its income over a particular period of time.

Interest Rates

The cost of borrowing money or the return on investments, typically expressed as a percentage of the principal amount.

Investment

Spending on business capital, residential capital, and inventories

Short-Run Phillips

A concept in economics that illustrates an inverse relationship between the rate of unemployment and the rate of inflation over the short term.