This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Sampling risk" – news · newspapers · books · scholar · JSTOR(March 2013) (Learn how and when to remove this message)
Sampling risk is one of the many types of risks an auditor may face when performing the necessary procedure of audit sampling. Audit sampling exists because of the impractical and costly effects of examining all or 100% of a client's records or books. As a result, a "sample" of a client's accounts are examined.[1]
Due to the negative effects produced by sampling risk, an auditor may have to perform additional procedures which in turn can impact the overall efficiency of the audit.[2]
Sampling risk represents the possibility that an auditor's conclusion based on a sample is different from that reached if the entire population were subject to audit procedure. The auditor may conclude that material misstatements exist, when in fact they do not; or material misstatements do not exist but in fact they do exist. Auditors can lower the sampling risk by increasing the sampling size.
Although there are many types of risks associated with the audit process, each type primarily has an effect on the overall audit engagement. The effects produced by sampling risk generally can increase audit risk, the risk that an entity's financial statements will contain a material misstatement, though given an unqualified ('clean') audit report. Sampling risk can also increase detection risk which suggests the possibility that an auditor will not find material misstatements relating to the financial statements through substantive tests and analysis.[3]
^"Audit Sampling Requires Auditor Judgment". The Agency Examiner. Retrieved 30 January 2013.
^"What is Sampling Risk in Auditing?". Pak Accountants. 16 March 2011. Retrieved 30 January 2013.
^"Detection Risk". Investopedia. Retrieved 30 January 2013.
Samplingrisk is one of the many types of risks an auditor may face when performing the necessary procedure of audit sampling. Audit sampling exists because...
Chorionic villus sampling (CVS), sometimes called "chorionic villous sampling" (as "villous" is the adjectival form of the word "villus"), is a form of...
Detection risk may be due to sampling error or non-sampling error. Audit risk can be calculated as: AR = IR × CR × DR[clarification needed] Risk-based auditing...
systematic sampling is a statistical method involving the selection of elements from an ordered sampling frame. The most common form of systematic sampling is...
genome-wide score; in the context of disease risk, it is called a polygenic risk score (PRS or PR score) or genetic risk score. The score reflects an individual's...
In statistics, cluster sampling is a sampling plan used when mutually homogeneous yet internally heterogeneous groupings are evident in a statistical population...
use adaptive routines such as stratified sampling, recursive stratified sampling, adaptive umbrella sampling or the VEGAS algorithm. A similar approach...
complicated sampling techniques, such as stratified sampling, the sample can often be split up into sub-samples. Typically, if there are H such sub-samples (from...
have been developed. One approach to inference uses large sample approximations to the sampling distribution of the log odds ratio (the natural logarithm...
Square root biased sampling is a sampling method proposed by William H. Press, a computer scientist and computational biologist, for use in airport screenings...
Percutaneous umbilical cord blood sampling (PUBS), also called cordocentesis, fetal blood sampling, or umbilical vein sampling is a diagnostic genetic test...
shop) – this process is known as food sampling. In most cases with food to be analysed there are two levels of sampling – the first being selection of a portion...
more general concept of sampling frame includes area sampling frames, whose elements have a geographic nature. Area sampling frames can be useful for...
Inverse transform sampling (also known as inversion sampling, the inverse probability integral transform, the inverse transformation method, or the Smirnov...
Value at risk (VaR) is a measure of the risk of loss of investment/Capital. It estimates how much a set of investments might lose (with a given probability)...
contaminant. Sampling methods include for example simple random sampling, stratified sampling, systematic and grid sampling, adaptive cluster sampling, grab...
along with chorionic villus sampling, are examples of prenatal diagnostic tests. Amniocentesis or chorionic villus sampling are necessary to conclusively...
The relative risk (RR) or risk ratio is the ratio of the probability of an outcome in an exposed group to the probability of an outcome in an unexposed...
primary types of soil sampling are grab sampling and composite sampling. Grab sampling involves the collection of an individual sample at a specific time...
included in the sample. Often combined with stratification techniques (in which case it is called multistage sampling), cluster sampling is the approach...
Acceptance sampling uses statistical sampling to determine whether to accept or reject a production lot of material. It has been a common quality control...