The amount by which a projected misstatement in an account balance or class of transactions differs from an actual misstatement as a result of the sample not being representative of the population would typically arise from:
A)A misunderstanding of accounting principles.
B)Sampling risk.
C)Management override of an internal control policy or procedure.
D)Risk of incorrect acceptance.

Question

Quizplus · Accepted Answer

The amount by which a projected misstatement differs from an actual misstatement due to the sample not being representative is known as sampling risk. This is a common risk associated with audit sampling and arises due to the possibility of selecting a sample that is not fully representative of the population being tested. Therefore, option B is the correct choice.

The Amount by Which a Projected Misstatement in an Account