The auditor has completed her testing of 100 sales invoices and has concluded that the revenue balance is fairly stated.The auditor failed to notice that all the items she tested were missing shipping records to the customer.It was later found out that the client created fake invoices to increase its revenue and receivable balances.What risk did the auditor fail to mitigate?
A) sampling risk
B) nonsampling risk
C) due care risk
D) business risk
Correct Answer:
Verified
Q1: When an auditor selects a sample from
Q2: The final step in the evaluation of
Q4: A)Discuss what is meant by "sampling risk."
Q5: An example of judgmental sampling is
A)block sampling.
B)simple
Q6: What is audit sampling and what are
Q7: CAS 530 has a very specific definition
Q8: A sample in which the characteristics of
Q9: One of the ways to eliminate nonsampling
Q10: Assume that the client's internal controls require
Q11: Sampling risk (sampling error)is an inherent part
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