The purpose of this assignment is to understand nonstatistical samplingtechniques and use these methods to calculate sample size.After viewing the unit material, apply critical thinking when answering the following questions. Submit your responses in a Microsoft Word document.-Summarize the concept behind monetary-unit sampling (MUS). How does MUS use attribute-sampling theory?-Describe two advantages and two disadvantages of monetary-unit sampling (MUS).-In nonstatistical sampling, describe the two methods auditors use to project sample results to the population. How does an auditor determine which method to use?-What is one advantage and one disadvantage of classical variables sampling?-An audit firm is conducting the audit of Diaz Construction Company for the fiscal year ended October 31. Rebecca Smith, the partner in charge of the audit, decides that MUS is the appropriate sampling technique to use in order to audit Diaz’s inventory account. The balance in the inventory at October 31 was $4,250,000. Rebecca has established the following: risk of incorrect acceptance = 5% (i.e., the desired confidence level of 95%), tolerable misstatement = $212,500, and expected misstatement = $63,750. Calculate the sample size and sampling interval using Table 8-5 in the textbook (round your interval answer to the nearest whole number).-A CPA company is conducting the audit of Finch Hardware Company for the year ended December 31. The senior-in-charge of the audit plans to use MUS to audit Finch’s inventory account. The balance at December 31 was $9,000,000, tolerable misstatement is $360,000, expected misstatement is $90,000, and the risk of incorrect acceptance is 5%. Compute the required MUS sample size and sampling interval using Table 8-5 in the textbook (round your interval answer to the nearest whole number).BusinessAccountingACCT 4990
