What is sampling risk?
The risk that is inherent to an account without consideration of internal control over financial reporting
The risk the conclusion based on your sample is different than if you tested 100% of the population.
The risk that your substantive procedures will not detect a misstatement in the financial statements.
The risk that financial statements are materially incorrect, even though the audit opinion states the financial statements are free of any material misstatements.
Sampling risk refers to the risk that the auditor's conclusion based on testing a sample may be different from the conclusion that would be reached if the entire population were tested. In other words, it is the risk that the auditor's substantive procedures might not detect a misstatement in the financial statements due to the use of a sample rather than testing the entire population.
