When testing controls, sampling risk is the risk that the auditor
A) concludes that their client's internal controls are ineffective when they are effective.
B) concludes that their client's internal controls are effective when they are ineffective.
C) both a and b
D) none of the above

Question

Quizplus · Accepted Answer

Sampling risk includes both types of errors - concluding that controls are ineffective when they are effective (Type I error), and concluding that controls are effective when they are ineffective (Type II error).

When Testing Controls, Sampling Risk Is the Risk That the Auditor