Final answer:
The required sample size in monetary-unit sampling (MUS) for Robinson's audit will depend on the desired confidence level, expected overstatement, recorded amount of the population, the number of accounts, and the tolerable misstatement. MUS attributes a monetary value to each unit and helps assess risks in financial accounts.
Step-by-step explanation:
The question asked relates to the ideal sample size required for Robinson to use monetary-unit sampling (MUS) in the audit of a client's accounts receivables with a desired confidence level of 90%. The factors considered are the expected overstatement, the recorded amount of the population of accounts, the number of accounts, and the tolerable misstatement. While the exact sample size calculation for MUS is not provided, I can offer a general insight that the sample size will depend on these specified factors and the auditor’s assessment of risk. Typically, higher confidence levels, a lower tolerable misstatement, and a larger expected overstatement would result in a larger sample size needed.
MUS is a statistical sampling method commonly used in auditing which involves attributing a monetary value to each unit in the sample. It is beneficial when the auditor expects certain misstatements and when individual monetary units within an account balance or class of transactions can be considered separately.
To precisely calculate the required sample size, auditors use specialized formulas and software. These tools take into account the desired level of confidence, the tolerable misstatement, the total value of the population, expected misstatements, and the number of accounts.