The following are descriptions of the way that key parameters are determined in a monetary unit sampling (MUS) plan. Using the correct letter, indicate which parameter is most closely associated with the description. Each parameter is associated with only one description.
1. Determined based on the recorded amount of the account balance or class of transactions | Expected error | ____ |
2. Estimated based on prior audits or a pilot sample of current balances | Population size | ____ |
3. Determined judgmentally by the auditor based on the overall financial statement materiality | Sample size | ____ |
4. Calculated by dividing the recorded balance by the amount of actual misstatement detected | Tolerable misstatement | ____ |
5. Calculated as the difference between the recorded value and the audited value of a logical unit comprising an account balance or class of transactions | Tainting percentage | ____ |
6. Determined based on tolerable misstatement, expected error, and the risk of incorrect acceptance | Actual misstatement | ____ |
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.