There are two methods auditors can use in selecting the samples (such as documents, invoices, systems, people) of an audit. Beyond an auditor's judgement, auditors can use a sampling technique based on statistical principles in collecting audit evidence.

Required:

1. Explain two risks that constitute a sampling risk.

2. Discuss the implication of an auditor conclusion that her/his client's system of internal controls is ineffective when it is effective.