Current Attempt in Progress

Whenever auditors obtain and test a sample for any population, an element of uncertainty exists with respect to the whole population not being tested. Which of the following best describes the risk that the auditor is exposed to in such situations?

In such situations, the auditor is exposed to sampling risk, which is defined as the risk associated with reaching an incorrect conclusion based on testing a sample and not the entire population.

In these instances, the auditor is exposed to a risk of material misstatement, which is defined as the risk that the auditors only catch material misstatements and not all misstatements in the financial statements.

In these instances, the auditor is exposed to audit risk, which is defined as the risk that the auditor Is taking for having expressed an incorrect opinion on the financial statements.

In these cases, the auditor is exposed to control risk, which is defined as the risk that the auditor unknowingly modifies his or her opinion on the financial statements due to poor internal controls.