Which of the following is true about sampling and non-sampling risks?Select one:a.Non-sampling risk can be eliminated by proper engagement planning, supervision, and review.b.Non-sampling risk arises from the possibility that the auditor's conclusion, based on a sample may be different from the conclusion reached if the entire population were subjected to the same audit procedure.c.Sampling risk can be reduced by increasing sample size.d.Sampling risk cannot be eliminated.

Which statement is incorrect about sampling risk?Select one:a.Risk of assessing control risk too low and risk of incorrect acceptance affects audit effectiveness as it would usually lead to additional work to establish that initial conclusions were incorrect.b.Sampling risk arises from the possibility that the auditor's conclusion, based on a sample may be different from the conclusion reached if the entire population were subjected to the same audit procedure.c.Risk of assessing control risk too high is the risk that the auditor will conclude, in the case of a test of control, that control risk is higher than it actually is.d.The mathematical complements of sampling risks are termed confidence levels.

Each time an auditor draws a conclusion based on evidence from a sample, an additional risk, sampling risk, is introduced. An example of sampling risk isSelect one:a.Properly applying an improper audit procedure to sample data.b.Drawing an erroneous conclusion from sample data.c.Projecting the results of sampling beyond the population tested.d.Improperly applying a proper audit procedure to sample data.

Which of the following statements is not correct?Select one:a.It is acceptable for auditor to use statistical sampling methods.b.It is acceptable for auditor to use non-statistical sampling methods.c.The primary benefit of statistical sampling methods is the quantification of sampling risk.d.An advantage of using statistical sampling is that the cost/benefit ratio is always positive.

Which of the following is NOT a reason for sampling?Question 11Select one:a.The physical impossibility of checking all the items in the population.b.The destructive nature of certain tests.c.The adequacy of sample results.d.All of these are reasons for sampling.

The level of sampling risk that the auditor is willing to accept do not necessarily affect the sample size required.Select one:TrueFalse