Which of the Following Statements Best Describes an Inherent Limitation

question 45

Multiple Choice

Which of the following statements best describes an inherent limitation of the monetary-unit sampling method?

• A)It can only be used for substantive testing of asset accounts.
• B)It requires the use of a computer system to perform the required calculations.
• C)Misstatement rates must be large and the misstatements must be overstatements.
• D)Misstatement rates must be small and the misstatements must be overstatements.

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Manager

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