Sampling risk for tests of controls includes
A)the risk of assessing inherent risk too high
B)the risk of assessing control risk too high
C)the risk of assessing control risk too low
D)the risk of assessing inherent risk too low
E)the risk of assessing audit risk too high
F)Both B and C

Question

Quizplus · Accepted Answer

Sampling risk for tests of controls refers to the risk that the sample selected may not be representative of the population and may lead to incorrect conclusions about the effectiveness of internal controls. This risk includes both the risk of assessing control risk too high (meaning the auditor may conclude that controls are not effective when they actually are) and the risk of assessing control risk too low (meaning the auditor may conclude that controls are effective when they actually are not). Therefore, the best choice is F, which includes both options.

Sampling Risk for Tests of Controls Includes