Question

Edwards has decided to use monetary unit sampling in the audit...

A) Sampling for financial analysis
B) Statistical sampling in auditing
C) Monetary valuation in accounting
D) Currency-based auditing

Answer 1

Edwards has decided to use monetary unit sampling in the audit. Monetary unit sampling is a statistical sampling technique used in auditing to select and examine specific monetary units from a population to determine if they are free from misstatement.

Step-by-step explanation:

Edwards has decided to use monetary unit sampling in the audit. Monetary unit sampling is a technique used in auditing to select and examine specific monetary units, such as invoices or transactions, from a population to determine if they are free from misstatement. It is a form of statistical sampling in auditing that allows auditors to make inferences about the entire population based on a sample. By using monetary unit sampling, Edwards can gain insights into the financial accuracy and integrity of the audited entity.