One of the causes of nonsampling risk is
A) choosing the wrong sample size.
B) ineffective audit procedures.
C) inadequate sample size.
D) exceptions being found in the sample.

Question

Quizplus · Accepted Answer

Nonsampling risk is the risk of failing to detect a material misstatement due to reasons other than sampling. One of the major reasons for this risk is ineffective audit procedures, which can lead to not uncovering material misstatements in the financial statements. Choosing the wrong sample size or inadequate sample size could also contribute to nonsampling risk but are not the only causes. Exceptions being found in the sample could lead to sampling risk, not nonsampling risk.

One of the Causes of Nonsampling Risk Is