Which of the following components of the audit risk model is most closely associated with variables sampling?
A)Audit risk.
B)Risk of material misstatement.
C)Detection risk.
D)Analytical procedures risk.

Question

Quizplus · Accepted Answer

Variables sampling is most closely associated with detection risk, which is the component of the audit risk model that deals with the risk that the auditor will not detect a material misstatement in the financial statements, even though it exists. Variables sampling is a statistical sampling technique that is used to estimate the amount or value of an account balance or class of transactions, which directly affects the determination of detection risk.

Which of the Following Components of the Audit Risk Model