Question

What is the relationship between sample risk and audit testing?

Answer 1

Sample Risk.

Sampling Means is the process of auditing a selected Sample of population and auditing that sample and preparing the audit conclusion on the whole population based on the result of sample audited is called sample.the auditor should select the sample in such a way the sample select must have all the characteristics of the population.The chances of an audit team to select the sample which does not contain all the characteristics of the population is called sample Risk.

Audit Test.

Audit test is the process of testing the performance of the process by using certain methods.on of the method used in entering some sample data which may or may not correct in nature. if the system accepted incorrect data for processing it means the system is performing properly.

The difference between sample risk and Audit test is that audit test is performed at system development stage which is in the initial part of internal control implementation whereas sampling risk is related to the audit of performance.

Conclusively audit test relates to internal control implementation were as sampling risk relates to final performance evaluation.