ACCA AA · Chapter 10 · Question 1 of 10
Under ISA 530, what is sampling risk?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The risk that the auditor's conclusion based on a sample may differ from the conclusion if the entire population were tested
Explanation
Sampling risk arises from testing less than 100% of a population. Non-sampling risk is the risk of reaching a wrong conclusion for other reasons, such as using inappropriate procedures or misinterpreting evidence. The auditor, not the client, must select the sample.
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