What is Sampling risk?
Also known as: risk arising from sampling
The risk that the auditor's conclusion based on a sample may differ from the conclusion that would be reached if the same procedure were applied to the entire population. ISA 530 defines it separately and distinguishes it from the risk of reaching a wrong conclusion for reasons unrelated to sampling (non-sampling risk). Sampling risk can lead to two kinds of error. The first: the auditor concludes that controls are working better than they actually are, or that no material misstatement exists; this affects audit effectiveness and may lead to an inappropriate opinion, so it is the more dangerous one. The second: the auditor concludes that controls are working worse, or that the misstatement is larger, than it actually is; this usually leads to additional work, that is, it affects audit efficiency. Increasing the sample size reduces sampling risk but does not bring it down to zero.
Source: 530-son AXS (ISA 530), ta'riflar; ACCA: Audit sampling