Which Description Best Illustrates Sampling Risk

question 10

Multiple Choice

Which description best illustrates sampling risk?

• A) Applying audit procedures that are inappropriate for the audit objectives.
• B) Failing to recognize errors or deviations in the documents examined.
• C) Arriving at incorrect statistical conclusions because of computational errors.
• D) Choosing a sample that does not represent the population.

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Definitions:

Conditions Subsequent

Specific conditions outlined in a contract that must occur or be performed after a specified event or action, which can affect parties' rights and obligations.

Conditions Concurrent

In a contract, these are conditions that must occur or be performed at the same time by the parties involved for the contract to become effective.

Express Conditions

Specific stipulations or criteria that are clearly stated and must be met for a contract or agreement to be fulfilled.

Implied Conditions

Terms and stipulations that are not expressly stated but are understood to be included within a contract or agreement.