MONETARY UNIT SAMPLING Difference between Monetary Unit Sampling and Nonstatistical Sampling The Definition of the Sampling Unit Is an Individual Dollar The Population Size Is the Recorded Dollar Population Preliminary Judgment of Materiality Is Used for Each Account Instead of tolerable misstatement Sample size Is determined Using a Statistical Formula A Formal Decision Rule Is Used for Deciding the Accepta bility of the population Sample selection Is Done Using Probability Proportional to Size Sample Selection (PPS) C 2000 by Prentice Hall,Inc.Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. MONETARY UNIT SAMPLING Difference between Monetary Unit Sampling and Nonstatistical Sampling • The Definition of the Sampling Unit Is an Individual Dollar • The Population Size Is the Recorded Dollar Population • Preliminary Judgment of Materiality Is Used for Each Account Instead of Tolerable Misstatement • Sample Size Is Determined Using a Statistical Formula • A Formal Decision Rule Is Used for Deciding the Acceptability of the Population • Sample Selection Is Done Using Probability Proportional to Size Sample Selection (PPS)