When sampling, the risk always exists _______.
A)that the auditor's conclusion based on the sample may be different than the conclusion drawn if the auditor had audited the entire population.
B)that the auditor's conclusion based on the sample may be the same as the conclusion drawn if the auditor had audited the entire population.
C)that audit fees may be lowered as a result of auditing a sample
D)that management may request a new sample

Question

Quizplus · Accepted Answer

Sampling involves selecting a subset of data from a larger population to draw conclusions about the entire population. Therefore, there is always a risk that the auditor's conclusion based on the sample may be different from the conclusion drawn if the auditor had audited the entire population. This is referred to as sampling risk. The other options (B, C, D) have no direct relation to sampling risk.

When Sampling, the Risk Always Exists _______