Sampling risk results from the auditor's failure to recognize exceptions in transaction data.

Question

Quizplus · Accepted Answer

Sampling risk arises from the possibility that the auditor's conclusion, based on a sample, may be different from the conclusion they would reach if they examined every item in the population. It is not due to the auditor's failure to recognize exceptions but from the inherent risk that the sample may not be representative of the population.

Sampling Risk Results from the Auditor's Failure to Recognize Exceptions