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) An auditor may select audit procedures that are not appropriate to achieve the specific objective.
C) A randomly chosen sample may not be representative of the population as a whole on the characteristics of interest.
D) An auditor may fail to recognise errors in the documents examined for the chosen sample.

Question

Quizplus · Accepted Answer

Sampling risk is the risk that the sample selected by an auditor may not be representative of the population as a whole on the characteristics of interest. This means that the sample may not be a good reflection of the entire population, which could lead to incorrect conclusions being drawn about the account balance or transaction class being tested. Options A, B, and D are examples of other types of audit risks.

Which One of the Following BEST Illustrates the Concept of Sampling