The purpose of this assignment is to understand the basic concepts when sampling audit evidence.

After viewing the unit material, apply critical thinking when answering the following questions. Submit your responses in a Microsoft Word document.

1. Why must an auditor use sampling? What tradeoffs occur when an auditor uses sampling?
2. Define Type I and Type II errors.
3. Explain the differences between sampling risk and nonsampling risk.
4. Identify the types of audit evidence that are tested using the audit sampling technique.