If an Audit Team Performing a Monetary Unit Sampling Application

question 33

Multiple Choice

If an audit team performing a monetary unit sampling application selects a sample using a systematic random selection method,which of the following is true with respect to accounts with a balance greater than the sampling interval?

• A)They have a 100 percent probability of being selected.
• B)They have no probability of being selected.
• C)They have a greater than 50 percent probability of being selected.
• D)They have a less than 50 percent probability of being selected.

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Definitions:

Cash Payments

Monetary transactions made by an entity to settle obligations or purchase goods and services.

Separate Recordkeeping

The practice of maintaining distinct and independent records for different parts of an organization's operations or financial activities.

Adequate Records

Maintaining sufficiently detailed financial records that reflect the company's transactions and financial condition.

Technological Controls

Systems and procedures implemented to monitor, manage, and secure an organization's technology infrastructure and data.