Select the description that best illustrates sampling risk.
A) Applying audit procedures that are inappropriate for the audit objectives.
B) Failing to recognize misstatements or deviations in the documents examined.
C) Arriving at incorrect statistical conclusions due to computational errors.
D) Choosing a sample that has proportionately more errors than the population.

Question

Quizplus · Accepted Answer

Sampling risk refers to the risk that the auditor reaches an incorrect conclusion because the sample chosen is not representative of the population. Specifically, choosing a sample that has proportionately more errors than the population increases the risk of drawing incorrect conclusions about the entire population. Options A, B, and C refer to other types of audit risks.

Select the Description That Best Illustrates Sampling Risk