To Calculate the Sample Size in Monetary Unit Sampling

question 10

Multiple Choice

To calculate the sample size in monetary unit sampling,

• A) the confidence factor is multiplied by the tolerable misstatement as a percentage of the population value.
• B) the confidence factor is divided by the tolerable misstatement as a percentage of the population value.
• C) the tolerable misstatement is divided by the population recorded value.
• D) the tolerable misstatement is multiplied by the population recorded value.

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Definitions:

Bound

Bound refers to being legally or ethically obligated; in a legal context, it often means being tied by a contract or an agreement.

Consideration

A fundamental concept in contract law that refers to something of value exchanged between parties, which is required for a contract to be legally enforceable.

Negligently

Acting with a lack of reasonable care or concern for the consequences, leading to potential harm or damage.

Legal Detriment

A concept in contract law where a party receives something of value in exchange for foregoing a legal right, forming a basis for a binding agreement.