Non/sampling Risks

Question 1

Nonsampling/sampling risk:
Detection risk

Answer 1

Audit procedures may fail to detect an issue in the population

(consists of both non and Samp risk)

Question 2

Nonsampling/sampling risk:
Non sampling risk

Answer 2

Detection risk not related to sampling. Eg auditor failed to recognize an error in a sample

Question 3

Nonsampling/sampling risk:

Non detection of an error

Answer 3

Auditor inattention or fatigue, misinterpretation of audit evidence or application, looking at the wrong approvals

Question 4

Nonsampling/sampling risk:

Sample risk

Answer 4

Sample is not representative of population

Question 5

Nonsampling/sampling risk:
Statistical sampling

Answer 5

Auditor should NOT quantify no statistical drawn sample

FYI Sample size goes up so sample risk goes down