Sampling risk is the risk that the sample chosen by the auditor is not representative of the population available for testing.

Question

Quizplus · Accepted Answer

Sampling risk is a well-known risk in auditing, and it can influence the auditor's ability to draw accurate and reliable conclusions about the nature of the population being examined. If the auditor does not choose a representative sample, the conclusions drawn from the sample may be significantly inaccurate, and the auditor's overall assessment of the financial statements may be flawed. Therefore, it is important for auditors to be aware of sampling risk and take steps to minimize this risk through proper planning and execution of sampling procedures.

Sampling Risk Is the Risk That the Sample Chosen by the Auditor