Whenever sampling is used in an audit procedure, uncertainty will be present. The two sources of this uncertainty are:
A) sampling risk and nonsampling risk.
B) compliance risk and substantive risk.
C) inherent risk and control risk.
D) detection risk and occurrence risk.
E) detection risk and inherent risk.

Question

Quizplus · Accepted Answer

Sampling risk arises because the sample may not be representative of the population, leading to incorrect conclusions. Nonsampling risk includes errors not related to the sampling process, such as misinterpretation of data or procedural mistakes.

Whenever Sampling Is Used in an Audit Procedure, Uncertainty Will