Non-sampling risk arises when an auditor:
A)uses an inappropriate audit procedure
B)tests all of the items in a population
C)does not use sampling
D)spends too much time testing the accounts most at risk of material misstatement

Question

Quizplus · Accepted Answer

Non-sampling risk arises when an auditor uses an inappropriate audit procedure, which could result in the auditor failing to detect material misstatements even if they had tested all items in the population. Non-sampling risk is not related to whether the auditor tests all items or spends too much time testing certain accounts.

Non-Sampling Risk Arises When an Auditor