In testing accounts receivable,an auditor sends out positive confirmation requests to 100 randomly selected customers.A customer returns the confirmation indicating that the balance is correct when,in fact,the balance is overstated.This is an example of:
A)Projected misstatement.
B)Sampling error.
C)Standard error.
D)Nonsampling error.

Question

Quizplus · Accepted Answer

This is an example of a nonsampling error because it arises from a mistake or error that is not related to the process of selecting a sample (such as a respondent confirming an incorrect balance), rather than an error that arises from the act of sampling itself.

In Testing Accounts Receivable,an Auditor Sends Out Positive Confirmation Requests