Question

Distinguish between record sampling and MUS.  

Answer 1

Record sampling is a statistical sampling method for estimating the rate of deviation from a prescribed control in an account or class of transactions

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. 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.

ACL offers many sampling methods for statistical analysis. Two of the most frequently used are record sampling and monetary unit sampling (MUS). Each method allows random and interval sampling. The choice of methods will depend on the auditor’s strategy and the composition of the file being audited. When records in a file are fairly evenly distributed across strata, the auditor may want an unbiased sample and will thus choose the record sample approach. Using inventory to illustrate, each record, regardless of the dollar amount of the inventory value field, has an equal chance of being included in the sample. On the other hand, if the file is heavily skewed with large value items, the auditor may select MUS, which will producea sample that includes all the larger dollar amounts.