ACCA Advanced Audit and Assurance (AAA) Practice Exam

Factors that contribute to non-sampling risk include all of the following except?

1. Auditor's lack of experience

2. Time pressure

3. Statistical sampling techniques

4. Poor planning

The correct answer is: Statistical sampling techniques

Non-sampling risk refers to the risk that the auditor may reach an incorrect conclusion for reasons not related to the sample size or selection. This can occur even when the correct sampling techniques are applied. In this context, statistical sampling techniques themselves do not contribute to non-sampling risk. Instead, they are methods designed to reduce the risk of making incorrect conclusions from samples by using a structured approach to identify and evaluate a portion of a population. When statistical sampling techniques are employed properly, they help ensure that the conclusions drawn are more likely to be valid across the entire population. In contrast, the other factors such as an auditor's lack of experience, time pressure, and poor planning can directly lead to errors in judgment or oversight during the audit process, increasing the likelihood of non-sampling risk. For example, an inexperienced auditor may misinterpret evidence, time pressure could lead to rushed work with overlooked details, and poor planning can result in inadequate procedures or insufficient consideration of risks. These issues can affect the overall quality and effectiveness of an audit beyond the sampling method employed.