The risk accepted by the auditor with respect to the sample not being representative of the population is known as _______.
A)control risk
B)inherent risk
C)sampling risk
D)audit risk

Question

Quizplus · Accepted Answer

Sampling risk refers to the risk that the sample selected by the auditor is not representative of the population being audited. This can lead to errors in the audit opinion. Control risk refers to the risk that internal controls are not effective in preventing or detecting material misstatements. Inherent risk refers to the risk of material misstatement inherent in the nature of the entity and its environment. Audit risk is the overall risk that the auditor may express an inappropriate opinion on the financial statements.

The Risk Accepted by the Auditor with Respect to the Sample