Whenever auditors use sampling, they risk making incorrect conclusions about the population. The risk that the auditor concludes that controls are more effective than they actually are is known as the
A) risk of overreliance.
B) risk of underreliance.
C) risk that the sample is not representative of the population.
D) risk that the sample conclusions cannot be useful because of nonprobability sampling.

Question

Quizplus · Accepted Answer

The risk that the auditor concludes that controls are more effective than they actually are is known as the risk of overreliance. This can occur when the sample selected is not representative of the entire population, which causes auditors to draw incorrect conclusions.

Whenever Auditors Use Sampling, They Risk Making Incorrect Conclusions About