The probability that an auditor's conclusion based on a sample might be different from the conclusion based on the entire population identifies the concept of:
A)Confidence levels.
B)Nonsampling risk.
C)Nonstatistical sampling.
D)Sampling risk.

Question

Quizplus · Accepted Answer

Sampling risk is the risk that the auditor may come to a wrong conclusion because the sample selected is not representative of the population as a whole. It identifies the probability that an auditor's conclusion based on a sample might be different from the conclusion based on the entire population. Confidence levels relate to the level of assurance derived from a statistical analysis of the sample data selected. Nonsampling risk relates to risk that may arise from factors other than sampling, such as the auditor's failure to recognize or address a material misstatement. Nonstatistical sampling refers to selecting a sample without using statistical techniques.

The Probability That an Auditor's Conclusion Based on a Sample