STATEMENT 1: In an audit sampling application, detection risk arises from the uncertainties of nonsampling risk and sampling risk. STATEMENT 2: Non sampling risk can be reduced to an acceptably low level by a 100% examination of the account balance or transaction class. A. Only Statement 1 is incorrect B. Only Statement 1 is correct O C. Both statements are incorrect D. Both statements are correct
STATEMENT 1: In an audit sampling application, detection risk arises from the uncertainties of nonsampling risk and sampling risk. STATEMENT 2: Non sampling risk can be reduced to an acceptably low level by a 100% examination of the account balance or transaction class. A. Only Statement 1 is incorrect B. Only Statement 1 is correct O C. Both statements are incorrect D. Both statements are correct
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools
Section: Chapter Questions
Problem 22CYBK
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![STATEMENT 1: In an audit sampling application, detection risk arises from the uncertainties of
nonsampling risk and sampling risk.
STATEMENT 2: Non sampling risk can be reduced to an acceptably low level by a 100%
examination of the account balance or transaction class.
A. Only Statement 1 is incorrect
B. Only Statement 1 is correct
C. Both statements are incorrect
D. Both statements are correct](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb106e732-21d7-4a71-a882-853576405676%2F45ab5f26-a801-4c21-a463-b2fc6429b921%2F3w66zhj_processed.png&w=3840&q=75)
Transcribed Image Text:STATEMENT 1: In an audit sampling application, detection risk arises from the uncertainties of
nonsampling risk and sampling risk.
STATEMENT 2: Non sampling risk can be reduced to an acceptably low level by a 100%
examination of the account balance or transaction class.
A. Only Statement 1 is incorrect
B. Only Statement 1 is correct
C. Both statements are incorrect
D. Both statements are correct
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