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Unformatted text preview: is materially misstated , and 3. Expectation: A nticipated M isstatement (AM), estimated amount of dollar error suggested by a preliminary sample or last years workpapers). Monetary-Unit Sampling (MUS) Advantages of MUS 1. Smaller sample sizes: When the auditor expects no misstatement, MUS usually results in a smaller sample size than classical variables sampling. 2. Dont need an estimate of standard deviation: The calculation of the sample size and evaluation of the sample results are not based on the variation between items in the population. 3. Increases likelihood of selecting larger items: easier than stratifying 4. Can reduce costs: Several sampled dollars can be tested by reviewing one document 5. As easy to use as attribute sampling 6. better than attribute sampling which expresses results in terms of number of errors; MUS expresses errors in dollar terms....
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- Fall '08