The Unique Feature of Monetary Unit Sampling Is That

question 107

Multiple Choice

The unique feature of monetary unit sampling is that

• A) Sampling units are not chosen at random.
• B) A dollar unit selected in a sample is not replaced before the sample selection is completed.
• C) Auditors need not worry about the risk of incorrect acceptance decision.
• D) The population is defined as the number of dollar units in an account balance or class of transactions.

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Definitions:

Warranty Liability

The legal obligation of a seller to ensure the goods or services sold meet certain quality and performance standards.

Dishonor

The refusal or inability to pay a bill of exchange or fulfill a financial obligation when due.

Presentment

The formal presentation of a financial instrument, such as a check, for payment.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay their outstanding debts, leading to the disposition of assets to pay creditors.