What is sampling risk?
Sampling risk is considered the risk that the sample will not represent the actual population. When conducting tests based on samples, the assumption is that the sample is indicative of the entire population. The auditor should apply professional judgment in assessing sampling risk.
In performing substantive tests of details, the auditor is concerned with two aspects of sampling risk: Risk of incorrect acceptance/ risk of incorrect rejection and the risk of assessing control risk too low/ risk of assessing control risk too high.
Back To All Questions