Question: 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

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:

A. 1. Explain two risks that constitute a sampling risk.

A. 2. Discuss the implication of an auditor conclusion that her/his client's system of internal controls

is ineffective when it is effective.

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