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 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.

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

Why would the auditor assess control risk?Select one:a.Because it indicates where inherent risk may be the greatest.b.Because it determines whether sampling risk is sufficiently low.c.Because it affects the level of detection risk the auditor may accept.d.Because it includes the aspects of nonsampling risk that are controllable.

Assessing control risk too high is the risk that the sample.Select one:a.Contains monetary misstatements that could be material to the financial statements when aggregated with misstatements in other account balances or classes of transactions.b.Contains proportionately more deviations from prescribed control procedures than actually exist in the population as a whole.c.Does not support tolerable error for some or all of management's assertions.d.Contains proportionately fewer deviations from prescribed control procedures than actually exist in the population as a whole