whenever sampling is used in audit procedures,uncertainty will be present.The 2 sources of this uncertainty are sampling risk and non sampling risk.
TRUE OR FALSE?
Audit procedures includes uncertainities which are either due to sampling or are due to factors other than sampling.The audit risk thus includes sampling risk and non-sampling risk,whenever there would be any uncertainty in audit procedure it would be either due to sampling risk or non-sampling risk.Sampling risk arises when a substantive test or test of controls is restricted to a sample,the auditor's conclusion would be diffetent from the conclusions that he would reach if the test were applied in the same manner to all the items in the class of transactions.Non-sampling risk may arise when the auditor may apply the same procedure to all the transactions but still fail to find a mistatement i.e the risk that arise from factors other than sampling.
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