Which of the following statements is most correct?
A) A sample of all items of a population will eliminate sampling risk, but increase nonsampling risk.
B) The use of an appropriate sample selection technique ensures a representative sample.
C) The auditor's failure to recognize an exception is a significant cause of sampling risk.
D) The use of inappropriate audit procedures is a significant cause of nonsampling risk.

Question

Quizplus · Accepted Answer

Nonsampling risk includes the risk that the auditor's procedures are not appropriate to achieve the specific objective. Using inappropriate audit procedures directly contributes to nonsampling risk because it may lead to incorrect conclusions or the failure to detect material misstatements.

Which of the Following Statements Is Most Correct