Which description best illustrates sampling risk?
A)Applying audit procedures which are inappropriate for the audit objectives.
B)Failing to recognize errors or deviations in the documents examined.
C)Arriving at incorrect statistical conclusions because of computational errors.
D)Choosing a sample that does not represent the population.

Question

Quizplus · Accepted Answer

Sampling risk is the risk that the sample selected by the auditor is not representative of the population being tested. Choosing a sample that does not represent the population increases the risk of errors in the audit conclusion. Option A relates to the risk of inappropriate audit procedures, option B relates to the risk of detection risk, and option C relates to the risk of errors in statistical analysis.

Which Description Best Illustrates Sampling Risk