Other factors equal when planning a monetary unit sample, which of the following is true regarding the maximum tolerable misstatement (M)? a.M is based on the sample results. b. the larger M is, the lower the confidence. c. the larger M is, the smaller the sample. d. the larger the expected misstatement, the smaller M is.

Tolerable Error Rate (TER) is the maximum acceptable rate of error sample results. TER = EPER + An…

Answered: tement (M)? a. M is based on the…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 15RQSC

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Other factors equal when planning a monetary unit sample, which of the following is true regarding the maximum tolerable misstatement (M)?

	a.	M is based on the sample results.
	b.	the larger M is, the lower the confidence.
	c.	the larger M is, the smaller the sample.
	d.	the larger the expected misstatement, the smaller M is.

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