Question: Explain the difference between the two types of sampling risk for controls: overreliance on an ineffective system of internal controls, and under reliance on an

Explain the difference between the two types of sampling risk for controls: overreliance on an ineffective system of internal controls, and under reliance on an effective system of internal controls. What are the errors' different implications for the audit? Which is the more serious risk? Explain.

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Sampling risk relates to the chance that the sample is not representative of the population If the s... View full answer

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