Monetary-Unit Sampling (MUS)
Disadvantages of MUS
1.
The selection of zero or negative balances generally
requires special design consideration.
2.
Understatements violate the model’s assumptions.
3.
The general approach to MUS assumes that the
audited amount of the sample item is not in error by
more than 100%.
4.
When more than one or two misstatements are
detected, the sample results calculations may
overstate the allowance for sampling risk.

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Steps in MUS Sampling Application
Planning
1. Determine the test objectives.
2. Define the population characteristics.
• Define the population.
• Define the sample unit.
• Define a misstatement.
3. Determine the sample size, using the following inputs:
• The desired confidence level or risk of incorrect acceptance (ARIA).
• The tolerable misstatements (TM).