Fani Warraich MANAGEMENT SCIENCES - Audit & Assurance

In the context of audit sampling, what is meant by the term "sampling risk"?

A. The risk that the sample selected may not be representative of the population. B. The risk that the auditor may fail to detect material misstatements in the financial statements. C. The risk that the auditor's procedures may not be performed effectively. D. The risk that the auditor may not maintain independence and objectivity.

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Explanation

Sampling risk arises from the possibility that the sample selected for testing may not accurately represent the characteristics of the entire population.

Which of the following types of audit opinion indicates that the financial statements are free from material misstatement? Normally audit of a bank is conducted through Which of the following best describes the primary objective of an external audit? Which of the following would NOT be considered a control deficiency in internal controls? Which of the following is a key responsibility of the auditor during the planning phase of an audit engagement? An auditor is liable for his annual audit of accounts of Internal Control is totally synonymous with Which of the following sampling methods is commonly used in audit testing to select items for examination? In the context of audit sampling, what is meant by the term "sampling risk"? Which of the following types of audit evidence is generally considered the most reliable? Verification includes Which of the following audit procedures is designed to test the existence and completeness assertion for inventory? What is the primary purpose of issuing an auditor's report? What does stratified audit sample means Which of the following best describes the purpose of analytical procedures in an audit engagement?

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In the context of audit sampling, what is meant by the term "sampling risk"?