Which of the Following Is an Advantage of Monetary Unit

question 92

Multiple Choice

Which of the following is an advantage of monetary unit sampling (MUS) ?

• A) It provides a conservative (higher) estimate of misstatement in the account balance or class of transactions.
• B) Its samples typically include transactions or components reflecting relatively large dollar amounts.
• C) It does not require the auditor to estimate the amount of misstatement in the account balance or class of transactions.
• D) It is effective in identifying misstatements in accounts for which understatement is a primary concern (such as liabilities).

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Definitions:

Life Cycles

The various stages of development and growth that an organism or entity (e.g., a product, an organization) goes through from inception to termination or renewal.

Exploration

The process of seeking and discovering new information, experiences, or areas of knowledge.

Organic Structure

Organic structure in an organization is characterized by less formalization, more decentralization, and a flexible approach to tasks and roles, enhancing adaptability and communication among employees.

Innovative Unit

A team or department within an organization specifically tasked with developing new ideas or products.