ICAEW ARF · Chapter 9 · Question 6 of 11
Which of the following is an example of non-sampling risk?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The auditor examines a document but fails to recognise a misstatement in it
Explanation
Non-sampling risk arises from factors other than sampling, for example using inappropriate procedures or misinterpreting evidence. Sampling risk is the risk that the auditor's conclusion based on a sample differs from the conclusion if the whole population were tested, which the other three options describe.
More Sampling and audit documentation MCQs
- Q8Which of the following is NOT a purpose of audit documentation?
- Q9Which of the following must be recorded on audit working papers documenting the testing of a sample of purchase invoices?
- Q10Who owns the audit working papers prepared during a statutory audit?
- Q11After the final audit file has been assembled, the auditor finds it necessary to add new documentation. Which of the following is permitted?
- Q1Which of the following best describes audit sampling?