In audit sampling applications, sampling risk isa. A characteristic of statistical sampling applications but not of nonstatistical applications.b. The probability that the audit team will fail to recognize erroneous accounting in the client’sdocumentation.c. The probability that accounting misstatements will arise in transactions and enter theaccounting system.d. The probability that an audit team’s conclusion based on a sample might be differentfrom the conclusion based on an audit of the entire population.
In audit sampling applications, sampling risk isa. A characteristic of statistical sampling applications but not of nonstatistical applications.b. The probability that the audit team will fail to recognize erroneous accounting in the client’sdocumentation.c. The probability that accounting misstatements will arise in transactions and enter theaccounting system.d. The probability that an audit team’s conclusion based on a sample might be differentfrom the conclusion based on an audit of the entire population.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In audit sampling applications, sampling risk is
a. A characteristic of statistical sampling applications but not of nonstatistical applications.
b. The probability that the audit team will fail to recognize erroneous accounting in the client’s
documentation.
c. The probability that accounting misstatements will arise in transactions and enter the
accounting system.
d. The probability that an audit team’s conclusion based on a sample might be different
from the conclusion based on an audit of the entire population.
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