Audit sampling in substantive tests is subject to both sampling risk and nonsampling risk.

Name: Audit sampling in substantive tests is subject to both sampling risk and nonsampling risk.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sampling risk arises because the auditor is making conclusions about the entire population based on a subset of that population, while nonsampling risk involves errors that can occur for reasons other than the size of the sample, such as human error or use of inappropriate audit procedures.

Audit Sampling in Substantive Tests Is Subject to both Sampling