The Audit Experience AS/2

Performance SupportMonetary Unit Sampling

(MUS)
The information in this performance support is provided to explain Monetary Unit Sampling
(MUS) and walk through an example of MUS using the MUS Workbook while providing tips on
areas where users of this template sometimes run into trouble.
This performance support will cover the following topics (click on a link to go to the topic):
WHAT IS MONETARY UNIT SAMPLING?
HOW DO I USE THE MUS WORKBOOK?
o Guidance tab
o MUS Calculations tab

Step 1: Input parameters

Step 2: Enter the lines of data from the population

Step 3: Perform the MUS reconciliation

o MUS Selections tab

WHAT IS MONETARY UNIT SAMPLING?
Monetary Unit Sampling (MUS) is one form of statistical sampling that we use for tests of
details in our audits. It is defined in the DTTL Audit Approach Manual (AAM) as a statistical
audit sampling method that can be applied to a population of items expressed as monetary
amounts. The sampling unit is defined as an individual monetary unit; the likelihood that an item
in the population will be selected is proportional to the number of monetary units contained in
the item. Basically, what this means is that this form of sampling selects items based on their
value; the higher the value of an item, the greater the chance of it being selected for testing.
MUS is often used for sampling those populations containing several items (i.e., hundreds or
thousands of individual items within the population). Using the Sampling Interval (Population
divided by Sample Size) as the selection interval in applying Monetary Unit Sampling,
automatically results in selecting the appropriate number of items. The items selected will also
automatically include all items with amounts individually greater than the sampling interval, if
any, and some portion of the smaller items in the population.
DTTL has created a tool that can assist you when doing a Monetary Unit Sample called MUS
Workbook. It can be found in most AS/2 packs from File, New Document in your AS/2 audit
file.

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

This workbook should be used when information is obtained electronically and there are many
lines of data. However, since Excel holds only 1,048,576 lines of information, if the population
being sampled has more than 1,048,576 lines of data, Excel cannot be used.
Further information on this sampling technique is detailed in the AAM Topic 5410 Perform test
of details and Topic 5410A Audit sampling methods and techniques.
HOW DO I USE THE MUS WORKBOOK?
The following will walk through the contents of the MUS Workbook by exploring each tab
within the workbook: MUS CalculationsFigure 5410.1 tab, and MUS Selections tab.
Guidance tab
The screen below is a snapshot of the Guidance tab in the MUS Workbook. To obtain an
accurate sample, follow the instructions exactly as described; even a slight deviation can lead to
inaccuracies.

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

TIPS! It is essential to use a blank MUS Workbook each time you do Monetary Unit Sampling.
You should not copy a prior years MUS Workbook or use a MUS Workbook from another audit
section; this is because a used MUS Workbook may be outdated or formatted specifically for the
existing sample (e.g., number of rows). It is much easier to start your Monetary Unit Sample
with a new MUS Workbook each time.

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

MUS Calculations tab

The MUS calculations tab is the first place you will be required to input data.
Step 1: Input parameters
When in the MUS Calculations tab, you must start by completing the first item discussed in the
Guidance tab, shown below:
Input parameters (Financial Statement Account, Population, Sample Size, and Random Start
Number) in the top section (ensure the Random Start Number is a POSITIVE number and not
greater than the sampling interval).
Within the MUS Calculations tab, you will need to enter the following: Financial statement
account, Population, Sample Size and random start number. See below for an illustration.

What is the random start number?

The random start number is any positive number you select between zero and the Sampling
Interval. This number needs to be selected at random and selection method should be
documented within your working papers. We ordinarily use a random number generator to
determine this number. Excel has a random number generator function by using the following
formula:
=RANDBETWEEN(bottom number, top number)
For example, entering into a cell=RANDBETWEEN(1,100) will generate a random
number between 1 and 100.
If you are having trouble using this function in Excel, you may have to install a tool required to
use this formula. Look up RANDBETWEEN in the Excel Help function and follow the
instructions. If a random number generator is not available, other means, such as a calculator

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

with a random number button, a table of random numbers, or selecting numbers from the serial
number of a currency note may be used.

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

Step 2: Enter the lines of data from the population

Press the Add Rows button in the top section and enter the number of lines of data in your
population. The necessary number of rows will be automatically inserted. (PLEASE NOTE
ONLY POSITIVE ITEMS SHOULD BE INCLUDED IN THE POPULATION. ALL
NEGATIVE ITEMS SHOULD BE REMOVED FROM THE POPULATION AND TESTED
SEPARATELY).
Copy the data from your population file and paste it in the white cells that were inserted. The
data should not be more than three columns wide. Typical data fields include ID Number,
Description, and Amount.

Before you enter the lines of data, you must prepare the data to enter it into the worksheet.
Ensure there are only three columns of data and determine the number of rows of data you have.
1

Obtain the data

This depends on the population related to the risk you are testing. Example populations may be:
A detail of customers and their account balances for testing the risks identified in
accounts receivable.
A check register of payments made for testing the risks identified in accounts payable or
bank reconciliation.
A detail of payroll expenses by employee.
For more information on populations, refer to Performance SupportTests of Details.
2

Manipulate the data for input

Whatever population you use to address the risk being tested, you must be sure to use only
the positive items in the population. Negative items must be removed and tested separately.

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

For example, if you are testing the risks identified in accounts receivable and there are certain
customers that have credit balances, they must be removed from the population in order for
the MUS sample to work accurately.

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

Next, determine the columns that will be input into the worksheet since the data cannot be
more than three columns wide.
Below is an example of accounts receivable detail that could be used for testing the risks
identified.

Add rows needed

Now you need to determine the number of rows required in the worksheet. As illustrated earlier,
the worksheet has only four rows at the moment and you are likely to have more than four rows
of data. To continue with the example of inventory, below is the data that was used to make
selections for inventory testing to test the risks identified.

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

As you can see, there are many lines of data, 40 rows to be exact. You need to copy each line of
data into the MUS Workbook in the white area previously shown. Before you can do this, you
need to add rows.

2000-2012 Deloitte Global Services LimitedPartners in Learning

The Audit Experience AS/2

How do you add rows?

As shown above, you need to select the "Add Rows" button on the worksheet and enter the
number of lines of data in your population file.

Add the number of rows you need (as shown above) and you will be ready to copy the data.
(You can even add a few extra rows just to be on the safe side!)
4

Copy the data

Once you have entered the correct number of rows, copy the data from your population file, and
paste it into the white cell area that you just created. When copying data:
Make sure the data you want to copy is no more than three columns wide. It should
typically contain an ID Number, Description, and Amount.
Put the first line of data into the first row of white cells next to Item #1.
Do not copy column headings or the total when you copy data. Only the individual data
lines should be copied to the white cells in this tab.
Watch for hidden columns or rows in the population file.

2000-2012 Deloitte Global Services LimitedPartners in Learning

10

The Audit Experience AS/2

When you have copied the data, your tab should look like this:

Step 3: Perform the MUS Reconciliation.

The objective of the MUS Reconciliation is to determine whether the correct numbers of sample
selections were made. If the correct sample selections were made, the MUS Reconciliation will
balance. If the reconciliation does not balance, it is important to review the parameters and
calculated sample size to determine what is causing the difference.
What is the MUS Reconciliation?
After you have copied the data as shown above and the selection process is completed, you must
perform MUS reconciliation. The objective of the reconciliation is to determine whether the
correct number of sample selections was made. The MUS reconciliation is on the bottom left
hand side of the MUS CalculationsFigure 5410.1 tab.
How do I perform the MUS Reconciliation?
If this reconciliation does not total zero, then the MUS calculation did not work and you must
review the parameters and calculated sample size to determine what is causing the difference.
Some examples of problems that may be encountered are:
Inserting additional rows through the Excel toolbar rather than the Add Rows button.
Selecting a random start number that is negative or greater than the sampling interval.
Copying hidden columns or row resulting in exceeding the parameters of the worksheet.

2000-2012 Deloitte Global Services LimitedPartners in Learning

11

The Audit Experience AS/2

Accidently deleting/entering information in the grey area of the worksheet.

2000-2012 Deloitte Global Services LimitedPartners in Learning

12

The Audit Experience AS/2

Once the MUS reconciliation balances, press the Retrieve Selections button in order to
automatically list the selections on the MUS Selections tab.

MUS Selections tab

Once you hit the Retrieve Selections button: After pressing the Retrieve Selections button on
the MUS Calculations tab, the selections will be automatically listed on this tab.
Confirm the total number of selections provided is the same number calculated on the MUS
Calculations Tab. If the numbers are not the same, review the information to identify the
difference.
You should see the following selections appear on the MUS Selections tab.

Once your selections are made, you are ready to begin testing. Notice how all items > sampling
interval are automatically selected for testing.

2000-2012 Deloitte Global Services LimitedPartners in Learning

13

The Audit Experience AS/2

Will the number of selections always be 1 item per selection?

The answer to this question is no. It was mentioned earlier that the 1 next to this number in the
Number of Selections column shows that this is 1 of the 5 selections required in the sample
size. It was mentioned that this might have been a 2, 3, or other positive number. If it were a 2,
that means that this item would count as 2 selections. If it were a 3, this item would count as 3
selections. In Monetary Unit Sampling, 1 item does not always mean 1 selection.
For example, assume the total number of selections was 7 instead of the 5 that you have seen in
this example. Assume that the following items were shown in the MUS Selections tab:

Will the sample size calculated in the MUS Workbook always be the same as when
calculated manually?
No, not always! This is because the MUS Workbook uses a random start number and selection
remainder. Depending on your random start number, you might get a different sample size to test
to address the risk identified. Your number of selections will always be the same but as some
selections count for more than one selection the actual number of items you get to test may vary.

2000-2012 Deloitte Global Services LimitedPartners in Learning

14

The Audit Experience AS/2

Note that this performance support does not replace the AAM. It should be read in conjunction
with the applicable AAM topics, as the manual states the requirements of our audit approach and
it provides further guidance.

2000-2012 Deloitte Global Services LimitedPartners in Learning

15