Which one of the following BEST illustrates the concept of sampling risk?
A) The documents related to the chosen sample may not be available for inspection.
B) A randomly chosen sample may not be representative of the population as a whole on the characteristics of interest.
C) An auditor may select audit procedures that are not appropriate to achieve the specific objective.
D) An auditor may fail to recognise errors in the documents examined for the chosen sample.

Question

Quizplus · Accepted Answer

Sampling risk refers to the risk that the sample selected may not be representative of the population from which it is drawn, or that the auditor may draw an incorrect conclusion about the population based on the sample. Option B best illustrates this concept. Option A represents non-sampling risk, as the availability of documents is not related to the representativeness of the sample. Option C represents detection risk, as it is related to the auditor's performance rather than the sample itself. Option D represents non-sampling risk, as the possibility of failing to recognize errors applies to any sample, not just non-representative ones.

Which One of the Following BEST Illustrates the Concept of Sampling