The risk that, due to the application of an inappropriate audit procedure, an auditor will conclude that a material error does not exist in an account balance when, in fact, such error does exist is referred to as:
A)sampling risk.
B)control risk.
C)non-sampling risk.
D)inherent risk.

Question

Quizplus · Accepted Answer

Non-sampling risk is the risk that arises from reasons other than sampling and relates to the possibility that an auditor will reach an inappropriate conclusion based on the evidence obtained. This includes the risk of not detecting a material misstatement due to an inappropriate audit procedure or failing to identify an important issue during audit planning or execution. Sampling risk relates to the possibility that the sample used by the auditor may not be representative of the entire population. Control risk is the risk that a material misstatement will not be detected or prevented by an entity's internal control system. Inherent risk is the risk that exists in an account balance or class of transactions before considering the effectiveness of internal control.

The Risk That, Due to the Application of an Inappropriate