Question: Explain the difference between the two types of sampling risk for controls: the risk that the auditor concludes that the clients system of internal controls

Explain the difference between the two types of sampling risk for controls: the risk that the auditor concludes that the client’s system of internal controls is effective when it is ineffective and the risk that the auditor concludes that the client’s system of internal controls is ineffective when it is effective. What are the errors’ different implications for the audit? Which is the more serious risk? Explain.

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In the context of auditing sampling risk refers to the risk that the auditors conclusion based on a sample may be different from the conclusion reache... View full answer

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