Explain two risks that constitute a sampling risk

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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 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.

Reference no: EM132743571

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