The Audit Team Is Using Monetary Unit Sampling to Examine

question 56

Multiple Choice

The audit team is using monetary unit sampling to examine an entity's accounts receivable balance,which is recorded at $500,000.The team has determined the tolerable misstatement to be $25,000,the risk of incorrect acceptance to be 5 percent,and the expected misstatement to be 2 percent.Using the monetary unit sampling Sample Size table,what is the appropriate sample size?

• A)75
• B)162
• C)231
• D)300

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Definitions:

Entrepreneurs

Individuals who create, organize, and operate businesses, taking on greater than normal financial risks in order to do so, often seen as innovators who drive economic growth.

Traders

Individuals or entities engaged in the buying and selling of goods, services, or financial instruments, often acting as intermediaries in trade transactions.

Birthday Party

A celebration or gathering marking the anniversary of a person's birth.

Generalized Reciprocity

A form of exchange where goods or services are given without an immediate or specific expectation of return, often found in close relationships.