Non-sampling risk is typically controlled by _______.
A)the internal audit function
B)a firm's quality control procedures and the review of audit work performed by a manager or partner on the audit team or an engagement quality control reviewer.
C)a client's quality control procedures and the review of audit work performed by a manger or partner on the audit team or an engagement quality control reviewer.
D)an increased confidence level when performing statistical tests

Question

Quizplus · Accepted Answer

Non-sampling risk is the risk that arises from factors other than sampling and can be controlled by a firm's quality control procedures and the review of audit work performed by a manager or partner on the audit team or an engagement quality control reviewer. The internal audit function can help in identifying and addressing such risks but is not directly responsible for controlling them. Similarly, the client's quality control procedures can help in mitigating some of the risks but cannot be relied upon solely. An increased confidence level when performing statistical tests may help in reducing sampling risk but not non-sampling risk.

Non-Sampling Risk Is Typically Controlled by _______