While selecting a sample of sales invoices for a test of internal controls,the auditor was unable to locate one invoice and classified this invoice as non-deviation.This is an example of
A)Sampling risk.
B)Incorrect acceptance.
C)Nonsampling risk.
D)Deviation risk.

Question

Quizplus · Accepted Answer

Nonsampling risk refers to human errors or mistakes in the audit process, such as misclassifying an item. In this case, the auditor incorrectly classified a missing invoice as a non-deviation, which is a nonsampling risk.

While Selecting a Sample of Sales Invoices for a Test