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

Question

Quizplus · Accepted Answer

Non-sampling risk arises when the audit procedure used is not appropriate to achieve the audit objective. It is not related to the use of sampling or the extent of testing. Spending too much time on high-risk accounts may increase the effectiveness of the audit, but it does not relate to non-sampling risk.

Non-Sampling Risk Arises When an Auditor