CAF-8 · Chapter 4 · Question 3 of 10
What is the definition of 'Sampling Risk'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 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 is the inherent danger that the selected sample is not completely representative of the entire population, leading to an erroneous conclusion.
More Evidence and Sampling MCQs
- Q5Under what condition is it appropriate for an auditor to use 'Negative Confirmations' for trade receivables?
- Q6If an auditor is unable to obtain a response to a positive external confirmation request from a major debtor, what is the required next…
- Q7Within the context of sampling, what does 'Tolerable Misstatement' refer to?
- Q8During sample evaluation, an auditor finds an error caused by a one-time computer glitch that has since been fixed and proven not to…
- Q9ISA 230 requires the auditor to assemble the final audit file on a timely basis after the date of the auditor's report. What is the…