The Auditor Uses Monetary Unit Sampling to Select a Sample

question 123

True/False

The auditor uses monetary unit sampling to select a sample of expense items for testing from a population of expenses. Subsequent to selecting this sample of expense items, the client identifies additional expenses not included in the population and included in the audited financial statements. The auditor in this situation must include these additional expenses as part of the population subject to the sampling and select a revised sample of expense items for testing.

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Definitions:

Good Faith

A sincere intention to deal fairly with others without any intention to defraud or seek an unfair advantage.

Duty Of Obedience

The legal or ethical obligation of individuals to act in accordance with the laws, rules, or regulations that govern their behavior or role, particularly in organizational or fiduciary contexts.

Authorized Contract

An authorized contract is a legal agreement that has been approved and executed by individuals or entities who have the legal capacity and authority to do so.

Tort

A civil wrong that causes harm or loss, leading to legal liability.