Which of the following describes sampling risk?
A)The sample will not contain characteristics representative of the population such that inferences made about that population will be incorrect.
B)The population will not contain characteristics representative of the sample such that inferences made about that sample will be incorrect.
C)Neither A nor B is correct.
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Sampling risk refers to the possibility that the sample selected for audit may not be representative of the population as a whole. This can lead to incorrect inferences being made about the population based on the sample, causing the auditor to either over- or under-estimate the extent of a problem or the degree of compliance. Option A correctly describes this type of risk. Option B describes the opposite situation where the population is not representative of the sample, which could be an issue in some cases but is not a type of sampling risk.

Which of the Following Describes Sampling Risk