Which of the Following Statements Is Correct About Monetary Unit

question 18

Multiple Choice

Which of the following statements is correct about monetary unit sampling?

• A) The risk of incorrect acceptance must be specified.
• B) Smaller logical units have a higher probability of selection in the sample than larger units.
• C) Each logical unit in the population has an equally likely chance of being selected in the sample.
• D) The projected misstatement cannot be calculated when one or more misstatements are discovered.

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Definitions:

Bonding Employees

A fiduciary process where employees are covered by a bond to protect the employer against losses from the acts of fraud or dishonesty by the employees.

Collusion

An unethical or illegal agreement between two or more parties to limit competition, manipulate markets, or otherwise conduct deceptive practices.

Cash Registers

Machines or devices used by businesses to manage cash transactions, track sales, and store money.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement.