Which of the Following Is Not True with Respect to the Use

question 7

Multiple Choice

Which of the following is not true with respect to the use of monetary unit sampling (MUS) ?

• A)MUS selects individual dollars from an account balance for verification.
• B)Compared to classical variables sampling,MUS allows the auditors to more effectively control their exposure to sampling risk.
• C)MUS estimates the extent of misstatement in an account balance or class of transactions.
• D)MUS provides the auditor with a more conservative estimate of the misstatement than classical variables sampling.

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Definitions:

Horizontal Marketing System

A collaboration strategy where companies at the same level of the value chain join forces to exploit a marketing opportunity.

Administered Vertical Marketing System

A coordinated marketing system managed by a single channel member to achieve efficient distribution.

Wholesaler-sponsored Voluntary Chains

Agreements between independent retailers and wholesalers to engage in bulk buying and standardized selling practices to compete with large chains.

Retailer-sponsored Cooperatives

Retailer-sponsored Cooperatives are groups of independent retailers who collaborate to pool buying power and resources in order to compete with larger chains.