Which of the following statements about audit sampling risks is correct?
A)Nonsampling risk arises from the possibility that,when a substantive test is related to a sample of items,conclusions might be different than if the auditor had tested each item in the population.
B)Nonsampling risk can arise because an auditor failed to recognize misstatements.
C)Sampling risk is derived from the uncertainty in applying audit procedures to specific risks.
D)Sampling risk includes the possibility of selecting audit procedures that are not appropriate to achieve the specific objective.

Question

Quizplus · Accepted Answer

Nonsampling risk relates to risks that arise from factors other than sample selection, such as the failure to recognize misstatements. Sampling risk is the risk that an incorrect conclusion may be drawn because the sample is not representative of the population. The statement in option A is not accurate, as it describes the risk of sampling error rather than nonsampling risk. Lastly, option D refers to the risk of incorrect audit procedures rather than sampling risk.

Which of the Following Statements About Audit Sampling Risks Is