 In this presentation, we will discuss the monetary unit sampling or M.U.S. process, the steps that we will go through to apply the monetary unit sampling. We're going to have the planning part. We're going to have the performance and the evaluation. This is where we're going to break the steps up into, into these chunks, into these categories, the planning, performance and evaluation. The planning is going to have two components to it because we're going to have a long description of what is in the planning. So there's the planning part one. Decide on test objective. And as we go through these, we will first review them and then we'll go through them in some more detail shortly. Define the population characteristics, population characteristics, including define the population, define the sampling unit, define a misstatement, then still in the planning area, decide on the sample size using, so we're going to decide on the sample side and use these to do so, desired confidence level or risk of incorrect acceptance, tolerable misstatement, expected population misstatement and population size. Once we have the planning set up, we'll go into the actual performance. We'll actually be doing the process here. Now that the plan is set up, we're going to select the sample items. So we're going to select the items that will be sampled, then we'll perform the auditing procedures on them. We're going to perform say the tests or the auditing procedures to the sample. Then we're going to have the evaluation. Once we have performed the monitor unit sampling, which will be conclude, calculate the projected misstatement and the upper limit on misstatement. And then we're going to come to that final conclusion. So we're going to go through some of these steps now in more detail. So now we're going to keep in the planning phase. We're considering the decide on test objectives. So we're in the planning, decide on test objectives, starting off in the process. Sampling can be used for substantive testing to remember that we're in the substantive testing as opposed to the testing of controls to test reasonableness of assertions about a financial statement amount. So we're considered, we're often considering the amount like accuracy or existence, accuracy or existence of an amount typically. Now this is the most common use of the sampling for substantive testing. However, we can also develop an estimate of an amount as well using this method. Define the population characteristics. So within defining the characteristics, we need to define the population. So recall that the population is the monetary value of an account balance. So typically we're talking about, we're considering the population size. Oftentimes when we're thinking about sampling size, when we're thinking about sampling size for dollar amounts, now we're saying the population is the monetary value of an account balance. So if we're thinking about accounts receivable, the population size basically is the monetary balance, the amount of the accounts receivable on the balance sheet. For example, obviously the accounts we're thinking of are accounts receivable and inventory. So if we think about something like inventory, we can say, hey, they have units as well that we can test to see if the units are there. But we can, we are considering here the monetary value, the amount on the balance sheet in a monetary terms. Then we have the defined the sampling unit, an individual dollar represents the sampling unit. So the sampling unit will be dollars. Define a misstatement difference between the monetary amounts in the business records and the amounts supported by the audit evidence. So we're going to go through the test, we're going to get the audit evidence, we're going to come up with an amount, we're going to compare that to the amount reported on the business records. Then we have the decide on the sample size using, we have the desired confidence level or risk of incorrect acceptance, the tolerable misstatement, the expected population misstatement and the population size. Now we've seen this factor table in prior presentations when we applied statistical sampling to tests of control. We have the similar table with the relationships of these items. In other words, the factors, the change in the factor and the effect on the sample size. The difference in this table is going to be the item in red. Note down here that we are considering the sample size as a relation to the population.