When performing audit procedures, the auditor is faced with an uncertainty of not detecting material errors in an account balance or class of transactions. This uncertainty arises because of sampling and non-sampling risks. a) Define sampling risk. b) Define non-sampling risk. c) How could the auditors control each type of risk?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Subject:  Auditing & Assurance Principles

When performing audit procedures, the auditor is faced with an uncertainty of not detecting material errors in an account balance or class of transactions. This uncertainty arises because of sampling and non-sampling risks.

a) Define sampling risk.
b) Define non-sampling risk.
c) How could the auditors control each type of risk?

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