CHAPTER 9 Audit Sampling

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CHAPTER 09 - Audit Sampling CHAPTER 9. Audit Sampling Review Questions 9 1 Nonstatistical Sampling is an Audit Sampling technique in which the risk of Sampling error is estimated by the auditors using professional judgment rather than by the laws of probability. Statistical Sampling involves the quantification of the risk of Sampling error through the use of mathematics and laws of probability. 9 2 Sampling risk is the possibility that the auditors will make an erroneous decision based on a sample result. To control Sampling risk the auditors increase the size of their samples. Nonsampling risk is the risk of erroneous conclusions by the auditors based on any factor other then Sampling .

existence of material misstatement when, in fact, material misstatement does not exist. b. The risk of incorrect acceptance—that is, the possibility that the sample results will cause the auditor to accept the population as free of material misstatement when, …

  Material, Misstatement, Material misstatement, Of material misstatement