Select the description that best illustrates sampling risk.
A)Applying audit procedures,which are inappropriate for the audit objectives.
B)Failing to recognize misstatements or deviations in the documents examined.
C)Arriving at incorrect statistical conclusions due to computational errors.
D)Choosing a sample which has proportionately more errors than the population.

Question

Quizplus · Accepted Answer

Sampling risk refers to the possibility that the auditor's conclusion based on a sample may be different from the conclusion they would have reached if the entire population had been examined. Choosing a sample that has proportionately more errors than the population increases the risk of the auditor reaching a wrong conclusion, which is an example of sampling risk. A, B, and C describe other types of audit risk, but not sampling risk.

Select the Description That Best Illustrates Sampling Risk