In short
Nonsampling risk is the risk that the auditor reaches a wrong conclusion for reasons unrelated to sampling, such as using an inappropriate procedure or misinterpreting evidence.
Key takeaways
- It exists even when the whole population is tested.
- Planning, supervision, review and quality management reduce it.
- Increasing the sample size doesn't reduce it.
Where it's tested
AUD: Audit Sampling — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In a test of controls, the tolerable deviation rate is 5% and the computed upper deviation rate based on the sample is 6.2%. What should the auditor conclude?