The auditors' failure to recognize a misstatement in an amount or a deviation in an internal control data processing procedure is described as a:
A)Statistical error.
B)Sampling misstatement.
C)Standard error of the mean.
D)Nonsampling error.

Question

Quizplus · Accepted Answer

The failure of auditors to recognize a misstatement or deviation in an internal control data processing procedure is known as a nonsampling error. This can occur due to a lack of understanding of the client's business or accounting practices, failure to gather sufficient evidence during the audit process, or simply an error in judgment by the auditor. Unlike sampling errors, which can be quantified and reduced through statistical techniques, nonsampling errors are more difficult to identify and correct.

The Auditors' Failure to Recognize a Misstatement in an Amount