Sampling risk is
A)the risk that the sample is not representative of the population
B)the risk that the population is not representative of the sample
C)the risk that material misstatements occur in the financial statements and are not detected by the auditor
D)the risk that material misstatements occur in the financial statements

Question

Quizplus · Accepted Answer

Sampling risk is the risk that the sample chosen by the auditor is not representative of the population as a whole. This can lead to incorrect conclusions being drawn about the population based on the sample, and can impact the overall audit opinion. B is incorrect because the population cannot be representative of the sample, as the sample is chosen from the population. C and D refer to the risk of misstatement, but not specifically related to sampling.

Sampling Risk Is