Monetary-Unit Sampling Is Said to Eliminate the Need to Stratify

question 5

Multiple Choice

Monetary-unit sampling is said to eliminate the need to stratify the sample because

• A) Sample items are selected in proportion to their dollar amount.
• B) The risk of incorrect acceptance is inversely related to sample size.
• C) Tolerable misstatement is considered when determining sample size.
• D) The upper limit on misstatements can be computed based on statistical principles.

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Definitions:

First Step

The initial action or decision that begins the process of pursuing a goal or solving a problem.

Allocation

Involves the distribution of resources or tasks among various departments, projects, or individuals based on priorities and strategic goals.

Arrangement

This term denotes the way in which things are organized or arranged, whether physically, socially, or logically.

Resources

Assets, materials, and other components necessary for a company or individual to function effectively.