Adjusting for the extent of misstatement by converting the degree or rate of misstatement into a monetary amount will be discussed below.īecause MUS is based on attribute sampling, the sample size may be determined by the same basic procedures as for a statistical sample size for tests of controls. An auditor is obviously more concerned with larger misstatements. Attribute sampling is often used for tests of controls and is most appropriate when each sample item can be placed into one of two classifications: “exception” or “no exception.” When a monetary balance is the object of interest, however, there are varying degrees of exceptions for example, the balance of a $5,000 receivable may be overstated by $50, $500, or even $5,000. Evaluating the results and arriving at a conclusion about the recorded population value.Īlthough MUS is used for variables sampling, it is actually based on attribute sampling techniques.Selecting the sample and performing the audit procedures and.Interested readers may download a copy of the authors’ spreadsheet from Using MUS involves three key steps: With current technology, auditors can use a Microsoft Excel spreadsheet that automates and enhances the use of MUS and reduces the chance of errors. Furthermore, MUS requires calculations that introduce the possibility of error if made manually. This approach relies on printed tables that offer limited options. Many auditors apply MUS using essentially the same methods that were used before the invention of personal computers and spreadsheet software.
The method, also known as dollar-unit sampling or probability-proportional-to-size sampling, has been used for many years and is widely accepted among auditors. Monetary-unit sampling (MUS) is a method of statistical sampling used to assess the amount of monetary misstatement that may exist in an account balance. This article originally appeared in our May 2005 Issue. “Our Greatest Hits” is an effort to show our readers the most popular – and still avidly read – articles from our archives.
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