Audit Sampling Error:

Audit sampling error refers to the discrepancy or difference between the characteristics of a sample selected for testing and the characteristics of the entire population from which the sample was drawn. When auditors conduct sampling procedures to evaluate the effectiveness of internal controls or test the accuracy of financial transactions, they select a representative sample from the population to draw conclusions about the entire population. However, due to the inherent variability in samples, there may be differences between the sample results and the true characteristics of the entire population. Audit sampling error represents the extent to which these differences exist and can impact the reliability of audit conclusions.

Objective Question:

What term refers to the discrepancy between the characteristics of a sample selected for testing and the characteristics of the entire population from which the sample was drawn?

A$)$ Audit reliability

B$)$ Audit sampling error

C$)$ Audit variance

D$)$ Audit discrepancy