Which description best illustrates sampling risk?
A) Applying audit procedures that are inappropriate for the audit objectives.
B) Failing to recognize errors or deviations in the documents examined.
C) Arriving at incorrect statistical conclusions because of computational errors.
D) Choosing a sample that does not represent the population.

Question

Quizplus · Accepted Answer

Sampling risk is the risk that the sample chosen by an auditor is not representative of the population being tested, therefore, option D best illustrates the concept of sampling risk. Option A is related to the risk of audit strategy, B is related to detection risk, and C is related to statistical risk.

Which Description Best Illustrates Sampling Risk