Sampling Risk Is the Risk That the Auditor Chooses the Wrong

question 53

True/False

Sampling risk is the risk that the auditor chooses the wrong sample selection method.

---

Definitions:

Breach of Warranty

A legal term referring to the failure to fulfill the terms of a promise or guarantee made in a warranty.

Seller's Promise

A commitment by the seller to the buyer that certain conditions, such as the quality or delivery of a product, will be fulfilled.

Duty on the Seller

The responsibility of the seller to deliver goods that meet the criteria specified in a sales contract, including aspects like quality, quantity, and timelines.

Implied Warranty

A legal concept that guarantees a product or service will meet certain expectations of quality and functionality even if not explicitly stated.