Which of the Following Is the Risk That an Auditor

question 20

Multiple Choice

Which of the following is the risk that an auditor will reach an incorrect conclusion because a sample is not representative of the population?

• A)Sampling risk
• B)Nonsampling risk
• C)Audit risk
• D)Detection risk

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Definitions:

Core Principles

Fundamental beliefs or guidelines that form the foundation for a system, process, or strategy, often defining its purpose and direction.

Cooling-Off Law

A regulatory measure that allows consumers a specified period of time after a purchase to cancel a transaction without penalty, typically applied to door-to-door sales and other direct sales practices.

Door-to-Door Transactions

Sales or services provided through direct visitation to a customer's home or business location, typically involving personal interaction.

Green River Ordinance

This type of ordinance protects consumers and aids local firms by making it more difficult for outside competition to enter the market.