Sampling risk (sampling error)is an inherent part of sampling which results from:
A) testing less than the entire population.
B) weaknesses in client's internal control system.
C) inappropriate audit procedures.
D) failure to recognise exceptions.

Question

Quizplus · Accepted Answer

Sampling risk (sampling error) arises when the auditor tests less than the entire population. This risk occurs because the sample may not be fully representative of the population being tested, leading to potential errors in the conclusions drawn from the sample. Weaknesses in client's internal control system (B) may lead to other types of risk (such as control risk), but not specifically to sampling risk. Inappropriate audit procedures (C) may also lead to other types of risk (such as detection risk), but again, not specifically to sampling risk. Failure to recognize exceptions (D) may lead to an increased risk of incorrect conclusions but is not the direct cause of sampling risk.

Sampling Risk (Sampling Error)is an Inherent Part of Sampling Which