Sampling risk for substantive testing includes
A)the risk of incorrect sample selection
B)the risk of incorrect sample evaluation
C)the risk of incorrect planning for sample selection
D)the risk of incorrect acceptance of the account balance or class of transactions
E)the risk of incorrect rejection of the account balance or class of transactions
F)both A and C
G)both B and E
H)Both D and E

Question

Quizplus · Accepted Answer

Sampling risk for substantive testing includes the risk of incorrect acceptance of the account balance or class of transactions (risk of assessing control risk too low) and the risk of incorrect rejection of the account balance or class of transactions (risk of assessing control risk too high). These risks are directly related to the decisions made based on the sample results, which may not accurately reflect the true nature of the entire population.

Sampling Risk for Substantive Testing Includes