Which one of the choices below is most correct regarding a cause of sampling risk?
A) ineffective use of audit procedures
B) testing less than the entire population
C) use of extensive tests of controls
D) use of random sampling

Question

Quizplus · Accepted Answer

Sampling risk arises from the possibility that the auditor's conclusion based on a sample may be different from the conclusion they would reach if they examined the entire population. Testing less than the entire population (option B) increases the risk of not detecting errors or fraud that could be present in the unsampled portion of the population, which is a cause of sampling risk. The other options (ineffective use of audit procedures, use of extensive tests of controls, use of random sampling) do not necessarily relate to a cause of sampling risk.

Which One of the Choices Below Is Most Correct Regarding