Non-Sampling Risk Is Typically Controlled by a Firm's Quality Control

question 73

True/False

Non-sampling risk is typically controlled by a firm's quality control procedures and the review of audit work performed by a manager or partner on the audit team or an engagement quality control reviewer.

---

Definitions:

Principal

Principal refers to the original sum of money borrowed in a loan or invested, exclusive of any interest or dividends.

Annual Payments

Periodic payments made once every year, often used in terms of loans, insurance, and investments.

Outstanding Balance

The amount of money owed on a loan or credit line that has not yet been repaid.

Single Premium Annuity

A financial product where a lump sum payment is made initially in exchange for a series of payments that will be received at future dates.