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's conclusion based on a sample may be different from the conclusion that would be reached if the entire population were examined. It is a type of audit risk that arises from the reliance on a sample rather than testing the entire population. Confidence levels refer to the level of assurance that the auditor has in the conclusions drawn from the sample, while nonsampling risk refers to the risk that arises from factors other than sampling and nonstatistical sampling refers to the use of judgmental or haphazard methods in selecting a sample.

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