Whenever auditors use sampling, they risk making incorrect conclusions about the population. For audit sampling of tests of transactions this risk is known as:
A) acceptable risk of assessing control risk too low.
B) acceptable risk of assessing transaction testing as too low.
C) risk that the sample is not representative of the population.
D) risk that the sample conclusions cannot be useful because of non-probability sampling.

Question

Quizplus · Accepted Answer

The acceptable risk of assessing control risk too low refers to the risk that the auditor will conclude that the control risk is lower than it actually is, based on the sample results. This is a specific risk associated with audit sampling in tests of transactions.

Whenever Auditors Use Sampling, They Risk Making Incorrect Conclusions About