In which of the following types of sampling applications is the auditor exposed to sampling risk?
A)Statistical sampling: Yes; Nonstatistical sampling: Yes
B)Statistical sampling: Yes; Nonstatistical sampling: No
C)Statistical sampling: No; Nonstatistical sampling: Yes
D)Statistical sampling: No; Nonstatistical sampling: No

Question

Quizplus · Accepted Answer

Both statistical and nonstatistical sampling can expose the auditor to sampling risk. Statistical sampling relies on probability theory and can quantify the risk of making an incorrect conclusion, but nonstatistical sampling does not. However, both methods involve selecting a sample from a larger population, and there is always a possibility that the sample does not accurately represent the population, leading to sampling risk.

In Which of the Following Types of Sampling Applications Is