Why Do Auditors Find MUS Appealing

question 128

Multiple Choice

Why do auditors find MUS appealing?

• A) MUS increases the likelihood of selecting a balance of high and low dollar items.
• B) MUS is easy to use in the audit environment.
• C) MUS provides a nonstatistical, rather than a statistical, conclusion.
• D) When misstatements are found, MUS rarely produces bounds in excess of materiality.

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Definitions:

Production Estimates

Forecasts or predictions about the quantity of products that will be produced over a specific period.

Sales Estimates

Projected figures of the amount and value of sales expected to be achieved in a future period.

Units Manufactured

The total number of units produced by a company during a specific period.

Master Budget

A comprehensive financial planning document that includes all of the lower-level budgets within a company, projecting its financial activities.