Non-Sampling Risk Ariswhen an Auditor

question 46

Multiple Choice

Non-sampling risk ariswhen an auditor:

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

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Definitions:

Annual Output

The aggregate sum of products and services generated by an economy or company within a single year.

Standard of Living

A measure of the economic welfare and the quality of life of a population, based on income, employment, class disparity, poverty rate, and housing affordability.

Productivity

The efficiency of production measured by the output per unit of input.

Standard of Living

The measure of fiscal prosperity, convenience, material assets, and critical needs granted to a select socioeconomic layer or specific geographic territory.