Non-Sampling Risk Arises When an Auditor

question 58

Multiple Choice

Non-sampling risk arises when an auditor:

• A)uses an inappropriate audit procedure
• B)tests all of the items in a population
• C)does not use sampling
• D)spends too much time testing the accounts most at risk of material misstatement

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Definitions:

Obligations

Duties or commitments that require an individual or organization to act in a certain manner, often legally binding.

Equivalent Replacement

The act or process of replacing an asset with another that performs the same function or yields the same output.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Overdue

Refers to a payment or obligation that has not been met by its specified due date.