Question

explain sample and non sample risk?

Answer 1

Hello buddy,

to begin with, I think the question you want to be answered is Sampling vs Non Sampling risk, relating to auditing.

Sampling risk refers to the risk that the auditor faces that his conclusing based on the sample he tested, might turn out to be different than had he tested the entire population. Considering certain limitation such as time, etc auditors are forced to resort to such tools such as sampling, which could give them a reasonable assurance regarding their objective.

Non - sampling risk can be understood as any other risk other than sampling risk and could include detection risk, control risk, etc. for that matter. For any other reason, if the auditor faces a risk that his conclusion maybe wrong, it can be called as non - sampling risk.

I hope the above solution is what you were looking for. For any further queries or doubts in the solution, please feel free to drop a comment. Please do leave a positive feedback, Thank you :)