 In this presentation, we will discuss monetary unit sampling or M-U-S. Monetary unit sampling uses attribute sampling theory to express a monetary conclusion instead of a rate of occurrence. First, a word from our sponsor. Well, actually, these are just items that we picked from the YouTube shopping affiliate program, but that's actually good for you because these aren't things that were just given to us from some large corporation which we don't even use in exchange for us selling them to you. These are things that we actually researched, purchased, and used ourselves. Acer 27 inch monitor. I've been using an Acer monitor as my primary monitor for a few years now. This is the first Acer monitor that I have used after having used a series of different brands of monitors in the past. The Acer monitor has been performing well and I'm trusting the Acer brand more and more as I use the monitor. I have a 27 inch monitor which I think is ideal for what I do, which is of course the screen recording and the editing. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com where we have many different courses. You can purchase one at a time or have a subscription model given you access to all the courses. Courses which are well organized have other resources like Excel files and PDF files to download and no commercials. Let's read that one more time. Monetary unit sampling uses the attribute sampling theory. So we're going to be using those attribute sampling theories, but now we're going to express monetary conclusions, basically dollar amount in conclusions instead of a rate of occurrence type of conclusion. And when we consider this, obviously we would think about what types of tests we would want this type of conclusion, a monetary conclusion as opposed to a rate of occurrence as we'll discuss shortly. Monetary unit sampling often is often used by auditors to test accounts like accounts receivable, loans receivable, investment securities, and inventory. These accounts, you can think of accounts that we might want to have then. Why would we use the MUS, the monetary unit sampling because we want to have a conclusion that will have that monetary dollar amount type of conclusion. Monetary unit sampling attribute sampling theory is used to estimate the percentage of monetary units in a population that might be misstated. So we're going to use that attribution sampling theory to estimate the percentage of monetary units, the percentage of monetary units. So that's where the monetary is coming into play, the dollar amount in a population that might be misstated. Then it multiplies this percent by an estimate of how much the dollars are misstated. Now we're going to talk about some of the advantages of monetary unit sampling MUS When the auditor expects a minimal misstatement, MUS usually results in a smaller sample size than classical variable sampling. So when we are considering the advantages we are comparing and contrasting to another method that can be used, classical variable sampling as a compare and contrast, the MUS will result in a smaller sample size, that being a benefit because it results in less testing for us. So if we can get results that we need with a smaller sample, that's typically what we want to do. When monetary unit sampling is applied using the probability proportional to size procedure, it automatically results in a stratified sample. So we already have that within the process. Does not require the user to make assumptions about the distribution of misstatements. So we're eliminating an assumption, which is nice as well because anytime we have the assumptions, there's room for errors to be made. Monetary unit sampling disadvantages, disadvantages include the selection of zero or negative balances also often requires special design considerations. So given the way we're setting this up in terms of the monetary unit type calculations, in essence, a zero or negative balance can throw things off. And so that therefore can mess things up. The selection of a zero or negative balance then often requires some kind of special consideration. When more than a small amount of misstatements are detected, the sample calculations may overstate the allowance for sampling risk. So one more time, when more than a small amount of misstatements are detected, so we have over a small amount of misstatements, the sample calculations can overstate the allowance for sampling risk.